Broadcom’s Q2 fiscal 2025 earnings report revealed a record $15 billion in revenue, driven by strong momentum in its VMware Cloud Foundation adoption, AI semiconductor sales, and new Tomahawk switches. CEO Hock Tan expressed confidence in the company’s future growth, citing an impressive 87% adoption rate among its 10,000 largest customers.
The company’s infrastructure software revenue grew 25% year over year to $6.6 billion, reflecting success in converting enterprise customers to VCF. This shift enables them to repatriate workloads from public clouds and run modern applications.
Tan also discussed the demand for Broadcom’s new Tomahawk 6 switches, which represent the next-generation switch capacity with improved performance in AI training. The company expects infrastructure software revenue to increase by 16% year over year in Q3.
However, Tan remained cautious about potential regulatory export controls on AI, saying that rules are changing rapidly and he doesn’t know how they will impact Broadcom’s business. The company’s semiconductor solutions group sales reached $8.4 billion, with AI semiconductor revenue growing 46% year over year.
Overall, Broadcom’s strong earnings report suggests a promising future for the company, driven by its successful adoption of VMware Cloud Foundation and growth in AI semiconductor sales.
Source: https://www.crn.com/news/cloud/2025/broadcom-ceo-on-vmware-renewals-vcf-customers-and-tomahawk-6