After the US stock market closed on Thursday, December 12th local time, Broadcom released its fourth quarter financial report as of November 3rd. Not only did it exceed expectations in profitability, but its AI revenue for the entire fiscal year also increased by 220% year-on-year to reach 12.2 billion US dollars.
Hock Tan, CEO of Broadcom, said that the company is developing customized artificial intelligence chips with three large cloud clients, and there are huge opportunities in the field of artificial intelligence in the next three years. Broadcom's stock price rose nearly 15% after hours.
According to Broadcom's financial report, for the fourth quarter ending on November 3rd, Broadcom's adjusted earnings per share were $1.42, better than expected at $1.38; The fourth quarter revenue increased significantly by 51% year-on-year, reaching $14.054 billion; During the same period, GAAP net profit increased to $4.324 billion, a 23% increase from the same period last year's $3.52 billion.
Broadcom stated in its financial report that the construction of generative AI infrastructure is driving the company's business needs. It is expected that AI product revenue will increase by 65% year-on-year in the first quarter of fiscal year 2025. It is expected that Broadcom will achieve a revenue of approximately $14.6 billion in the first quarter of fiscal year 2025, a year-on-year increase of 22%.
Chen Fuyang revealed during a post earnings conference call that Broadcom is currently developing artificial intelligence chips with three large clients. He expects that by 2027, each client will deploy one million artificial intelligence chips in their network cluster.
We see huge opportunities in the field of artificial intelligence in the next three years, and a large number of ultra large and massive companies have begun their journey of developing their own customized artificial intelligence accelerators. Chen Fuyang said that by 2027, the total market opportunity for their artificial intelligence chips and artificial intelligence network components may be between 60 billion and 90 billion US dollars.