Hock Tan reports record revenue for Broadcom Inc. as demand for custom AI silicon and networking remains insatiable.
Hock Tan, the CEO of Broadcom Inc., reported that demand for custom AI silicon and networking is currently insatiable, following a record $22.2 billion quarter for the company. The semiconductor segment reached $15 billion, with AI silicon alone accounting for $10.8 billion, representing a 143% year-on-year increase. Broadcom Inc. also saw significant growth in its VMware segment, which added $7.2 billion with a 93% gross margin. While Broadcom Inc. shows durability through its diversified portfolio and locked-in gigawatt commitments, Marvell Technology also demonstrated strong data center growth. Marvell Technology reported data center revenue of $1.83 billion, representing 76% of total revenue. However, Marvell Technology faces higher volatility and potential dilution from a warrant deal with Google. Analysts maintain a target price for Broadcom Inc. at $527.88, suggesting a significant upside case despite recent share price pullbacks.