Chip giant: Broadcom: AI boom drives profits – share under pressure despite strong figures

Broadcom beat expectations in the second quarter and is betting heavily on artificial intelligence. However, the stock is falling after the market close. Profit-taking is likely the reason. The details.

Summarized for you

Chip company Broadcom once again exceeded Wall Street expectations in the second quarter of 2025 and followed up with an optimistic outlook for the current quarter. Revenue increased 20 percent year-over-year to $15 billion, slightly above LSEG's analyst estimate. Adjusted earnings per share were $1.58 (expected: $1.56).

The artificial intelligence business was once again particularly strong: Broadcom generated $4.4 billion in revenue from AI-related products, primarily thanks to network technologies that connect server clusters in data centers. According to CEO Hock Tan, AI revenue is expected to rise to $5.1 billion in the current quarter. Tan emphasized that the company is continuing to work with three major cloud providers on customized AI accelerators—the willingness of these hyperscale customers to invest remains unwavering.

Short

Long

Presented by

wallstreetONLINE Editorial Team

0 followers

author

Written by Ferdinand Hammer