Broadcom‘s (AVGO) $730 billion rally from April lows might not be over just yet. And if its Thursday earnings are any indication, nor is the AI boom.
The chipmaker — which builds chips for companies like Samsung, Google, and Apple — reported 22% revenue growth in its latest quarter, growing to $15.95 billion in revenue. Adjusted EBITDA was $10.702 billion, or 67% of revenue.
Investors had a watchful eye on Wall Street’s latest $1 trillion tech obsession, which has seen its shares rally 32% year-to-date. The company’s stock has grown to command a fantastic premium as a result of its fast growth, striking comparisons with chip giant Nvidia (NVDA) .
Some investors worried that the company could put out a letdown, especially after a series of so-so results from similarly-situated semiconductor and AI-focused stock plays. However, Broadcom is in the unusual position of bucking industry-wide fatigue, at least in the last quarter. Instead of reporting slowing growth, it anticipates even faster growth in the future.
In its last quarterly performance, the company’s revenue grew 20%. In this performance, it grew 22%. Management now guides for the coming quarter’s revenue growth to be 24%, with no impact to adjusted EBITDA, a sign that its margins and growth are durable.
The guidance has induced the fascination of analysts, many of which have been looking for clues that the so-called “AI trade” is running out of steam. Whether it’s studies or company earnings, there’s signs of slowdown to be cherry-picked from across the industry.
But Broadcom bucks those industry-wide trends. Its coming quarter forecast puts it closer to the 25% growth it reported in the first quarter of the year, a rare sign of acceleration in a field that seems to be transitioning from the hypergrowth and optimism to an era of business impact.
$AVGO stock rose 0.41% after hours as investors marinated on the results.
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