Broadcom reported fiscal third-quarter results that surpassed Wall Street expectations for both revenue and earnings. The company reported earnings per share of $1.24, beating the expected $1.20, and revenue of $13.07 billion, higher than the anticipated $12.97 billion.
Despite the positive results, Broadcom’s shares fell by 7% in extended trading after the company provided guidance that was in line with expectations. The company projected current-quarter revenue of $14 billion and earnings of $1.36 per share, slightly below the expected $14.04 billion.
Net Loss and Tax Provision
Broadcom reported a net loss of $1.88 billion, or a loss of 40 cents per share, compared to a net income of $6.12 billion, or $1.24 per share in the year-ago quarter. The third-quarter net loss included a one-time tax provision of $4.5 billion related to trading intellectual property rights.
During the fiscal third quarter, Broadcom’s semiconductor sales reached $7.27 billion, reflecting a 5% annual increase. This segment remains larger than the infrastructure software segment, which generated $5.8 billion in sales, largely attributed to the VMware acquisition.
Focus on AI Semiconductor Solutions
Broadcom’s CEO Hock Tan highlighted the company’s focus on AI semiconductor solutions, anticipating sales of $12 billion from AI parts and custom chips in fiscal 2024. This figure is an increase from the previous forecast of $11 billion, showcasing the company’s commitment to technological innovation.
Investors have shown confidence in Broadcom, as the company produces vital components for big data centers and AI infrastructure. Broadcom’s involvement in projects like Google’s TPU chip, utilized by Apple for AI features, demonstrates its role in shaping the technology landscape.
Broadcom’s fiscal third-quarter results emphasize the company’s strong performance, exceeding revenue and earnings expectations. Despite the drop in share prices post-guidance announcement, Broadcom’s focus on AI semiconductor solutions and technological innovation positions it as a key player in the industry. Through continued growth in semiconductor sales and strategic acquisitions like VMware, Broadcom remains on a trajectory of advancement and success.