Broadcom Inc (NASDAQ:AVGO) reported a record total revenue of $19 billion for fiscal Q1 2025, up 25% year on year. The company’s adjusted EBITDA reached $10.1 billion, up 41% from the previous year.
The semiconductor division saw revenue grow by 11%, while AI revenue surged 77%, surpassing guidance and reaching $4.1 billion. Infrastructure software revenue also increased by 47%, driven by the integration of VMware and a shift to subscription-based models.
Broadcom is expanding its customer base, with four additional hyperscalers engaged in developing custom AI accelerators. However, non-AI semiconductor revenue declined due to a seasonal decrease in wireless.
The company’s free cash flow as a percentage of revenue was impacted by cash interest expenses and taxes. Concerns about geopolitical tensions and potential regulatory impacts on AI diffusion rules could pose risks to future operations.
Hock Tan, President and CEO, noted that while the new 3-nanometer AI accelerator programs are ramping up, the company will not speculate on second-half performance beyond its guided figures. However, he emphasized Broadcom’s focus on partners who need large volumes of products.
The Q2 revenue guidance is $14.9 billion, up 19% year on year, with AI revenue expected to reach $4.4 billion and infrastructure software revenue at $6.5 billion. The company has $9.3 billion in cash and $68.8 billion in gross principal debt, with a share repurchase of $2 billion.
Source: https://finance.yahoo.com/news/broadcom-inc-avgo-q1-2025-071946084.html