Broadcom Beats Q1 Revenue Estimates But Cautious Outlook Disappoints Despite Surging AI Chip Demand
• Broadcom beat revenue estimates for Q1 as demand for its networking chips grows due to AI computing upgrades at cloud providers • However, Broadcom did not raise its $50B annual revenue outlook, likely disappointing investors despite the earnings beat • Broadcom expects nearly 20% of its annual revenue to come from AI; CEO cited strong growth in custom AI chips for two unnamed hyperscale customers • Rival Marvell Technology's lower revenue forecast sent its stock down 6% after hours, casting doubt on hopes that AI demand will buoy chipmakers • Broadcom's software segment revenue grew 153% year-over-year, now comprising over one-third of total Q1 revenue at $4.57B