Broadcom AI revenue surges 74% but stock tumbles on profitability concerns despite record earnings
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Broadcom reports fourth quarter earnings after the bell
A Broadcom sign is pictured as the company prepares to launch new optical chip tech to fend off Nvidia in San Jose, California, U.S., September 5, 2025. Broadcom is scheduled to report its fourth-quarter earnings after market close on Thursday. Here's what analysts are expecting, according to
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Broadcom's stock falls despite another crushing earnings and revenue beat - SiliconANGLE
Broadcom's stock falls despite another crushing earnings and revenue beat Chipmaking giant Broadcom Inc. posted another stellar earnings and revenue beat as it delivered its fourth-quarter financial results, before following up with strong guidance driven by the market's insatiable demand for
[3]
Broadcom's AI Business Is Growing Fast. Here's Why the Stock Is Tanking Anyway.
Investors have scrutinized tech earnings more intensively in recent months amid concerns Silicon Valley is overspending on AI. Broadcom's custom AI chip business is growing rapidly. Wall Street, however, is wary about how much upside that growth suggests. Broadcom (AVGO) on Thursday predicted its
[4]
AI giant Broadcom stock falls 5% -- Why are Broadcom shares dropping; is Oracle to blame?
Broadcom stock falls 5%: Broadcom stock fell nearly 5% in pre-market trading on Friday. The company warned that its margins will decline due to a rising share of AI-related revenue. The update added fresh pressure to a tech market already shaken by cooling investor enthusiasm for artificial
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Broadcom Q4 2025 Earnings: 8 Things To Know From AI Strength, VMware Growth To Anthropic Deal Reveal
A focus on the accelerators, networking, and other components needed to build infrastructures, plus the signing of huge deals like the new $11 billion sale to Anthropic on top of a massive and growing backlog spike optimism on the future of Broadcom, President and CEO Hock Tan told analysts after
[6]
Broadcom's 50‑Year Playbook Gets A Radical Rewrite -- Thanks To OpenAI, Google, Meta - Broadcom (NASDAQ:AVGO)
Broadcom Inc (NASDAQ:AVGO) just pulled off the most lucrative "quiet pivot" in Silicon Valley -- and the market almost missed it while obsessing over a routine 5% dip. Track AVGO stock here. The company that spent half a century being defined by switches, routers and networking silicon is now
[7]
Broadcom CEO Hock Tan Just Delivered Incredible News for Nvidia Stock Investors
The data center and semiconductor specialist just provided the clearest evidence yet that the adoption of artificial intelligence (AI) continues to gain steam. The past few years have been a wild ride for Nvidia (NVDA 1.95%) investors. The company's graphics processing units (GPUs) played a
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Broadcom outlines $19.1B Q1 2026 revenue target as AI backlog surges to $73B (NASDAQ:AVGO)
Earnings Call Insights: Broadcom Inc. (AVGO) Q4 2025 Management View * Hock Tan, President, CEO & Executive Director, reported, "In our fiscal 2025, consolidated revenue grew 24% year-over-year to a record $64 billion, and it's driven by AI semiconductors and VMware. AI revenue grew 65%
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Broadcom Q4 Preview: After 74% Surge in 2025, Can Earnings Keep Rally Alive? - Broadcom (NASDAQ:AVGO)
Semiconductor giant Broadcom Inc (NASDAQ:AVGO) could highlight surging demand for artificial intelligence chips when the company reports fourth-quarter financial results Thursday after market close. * Broadcom stock is at critical resistance. Why did AVGO hit a new high? Here are the earnings
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Broadcom Boasts of $73 Billion Backlog on its AI-Chip Order Book
Company revenues grow by 24 percent during the entire year with VMware continuing to make a significant impact The battle for supremacy around the business of artificial intelligence appears to be growing faster than usage of AI models across enterprises, as we found out in this end-2025 review.
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Broadcom Pulls Back as Strong Earnings Fail to Match AI Growth Expectations | Investing.com UK
Broadcom (NASDAQ:AVGO) shares tumbled approximately 4.92% in premarket trading on December 12, 2025, falling to $386.36 as of 5:19:43 AM EST, after closing at $406.37 the previous day. The sharp decline came despite the semiconductor giant reporting strong fourth-quarter earnings that beat analyst
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Broadcom reports upbeat guidance, sees Q1 chip revenue doubling amid AI boost By Investing.com
Investing.com - Broadcom on Thursday reported upbeat guidance for the current quarter, forecasting AI-chip revenue to doubled in Q1 from a year earlier just as the chipmaker delivered fiscal fourth-quarter results that topped Wall Street estimates. Broadcom Inc (NASDAQ:AVGO) jumped more than 3% in
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Broadcom sees dip in quarterly margins due to AI, shares fall
Dec 11 (Reuters) - Broadcom projected first-quarter revenue above Wall Street estimates on Thursday, but said that margins would fall due to a higher mix of AI revenue, and shares fell 5% in extended trading. Broadcom has jumped into the AI chip business, which has investors nervous about the
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Broadcom beats expectations, forecasting a surge in AI chip sales
On Thursday Broadcom posted quarterly results that topped forecasts, alongside upbeat guidance driven by sustained demand in artificial intelligence. EPS reached $1.95 for Q4, versus $1.86 expected by the LSEG consensus. Revenue reached $18.02bn, well above the projected $17.49bn. Broadcom's shares
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Broadcom delivered crushing fourth-quarter results with AI chips revenue jumping 74% to $6.5 billion and total revenue reaching $18 billion. But the stock plunged over 10% after CEO Hock Tan warned that higher AI sales would compress gross margins. The company revealed an $11 billion custom chip deal with Anthropic and projected AI revenue to double to $8.2 billion next quarter, yet investors questioned whether rapid growth justifies stretched valuations.
Broadcom Delivers Record AI Revenue Growth Amid Margin Pressure
Broadcom reported fourth-quarter earnings that crushed Wall Street expectations, with total revenue climbing 28% year-over-year to $18.02 billion, well ahead of the $17.49 billion forecast
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. The company posted adjusted earnings of $1.95 per share, easily beating the analyst consensus estimate of $1.862
. AI chips drove the performance, with AI semiconductor sales surging 74% to $6.5 billion in the quarter5
. For the full fiscal year 2025, Broadcom achieved consolidated revenue of $64 billion, marking a 24% increase, while AI revenue alone grew 65% to $20 billion4
. Net income nearly doubled, rising 97% to $8.51 billion from $4.32 billion a year earlier2
.Stock Sell-Off Triggered by Profitability Concerns
Despite the stellar numbers, Broadcom stock tumbled more than 10% in intraday trading following the earnings announcement
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. The decline came after CFO Kirsten Spears warned that gross margin would contract 100 basis points quarter-over-quarter, "primarily reflecting a higher mix of AI revenue"3
. Investors scrutinized the revelation that AI systems and racks carry lower gross margins than custom chips, triggering a "sell the news" reaction in a market already priced for perfection4
. The stock had climbed 75% year-to-date before the earnings report, setting a high bar for results1
. Bank of America analysts called the margin worries a "fair concern" but raised their earnings estimates for 2026 and 2027, reflecting belief that faster AI revenue growth will more than offset narrowing margins3
.Custom AI Chips and Anthropic's Massive Order
CEO Hock Tan revealed that Anthropic was the mystery customer behind a $10 billion custom chip deal announced in September, and disclosed that Anthropic placed an additional $11 billion order in the fourth quarter for delivery in late 2026
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. Broadcom's custom AI chips business more than doubled year-over-year as customers increasingly adopt XPUs for training large language models and running inference workloads5
. The company now serves five customers for custom accelerators, including Google, OpenAI, and Anthropic2
. Google released its Gemini 3 AI model during the quarter, trained entirely on TPUs designed by Broadcom1
. Tan explained that AI companies "prefer to control their own destiny by continuing to drive their multiyear journey to create their own custom AI accelerators"2
.Related Stories
AI Infrastructure Spending Drives Order Backlog to $73 Billion
Broadcom's total order backlog for custom AI chips and data centers components reached a staggering $73 billion, which Tan said the company expects to convert into revenue within 18 months
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. AI networking demand remained strong, with the company's order backlog for AI switches exceeding $10 billion as customers build out infrastructure ahead of deploying AI accelerators5
. The company's 102-terabit-per-second Tomahawk 6 switch continues booking at record rates5
. Broadcom guided for first-quarter revenue of $19.1 billion, a 28% year-over-year increase, with AI semiconductor revenue projected to hit $8.2 billion, roughly doubling from last year4
. Futurum analyst Daniel Newman told the Wall Street Journal he expects the entire AI chips market to grow by around $1 trillion annually in coming years, with custom chips accounting for 25% to 30% of the market2
.Why This Matters for AI Infrastructure
Broadcom's performance signals that demand for AI infrastructure spending shows no signs of slowing, even as investors question how quickly these investments will translate into profits. The company's success with custom AI chips demonstrates a viable alternative to Nvidia's dominance in GPUs, as application-specific integrated circuits offer higher performance for specific workloads
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. Newman noted that Broadcom likely controls 70% to 80% of the custom silicon market because few rivals can match its design capabilities2
. VMware Cloud Foundation also contributed significantly, with infrastructure software revenue growing 26% to $27 billion for the year5
. The company raised its annual dividend by 10% to $2.60 per share, citing robust cash generation4
. Watch for how Broadcom manages the tension between rapid revenue guidance improvements and margin compression as the custom chip mix increases throughout fiscal 2026.References
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