Broadcom Inc. soared 17.5% to $212.36 after the advanced semiconductor chipmaker reported better-than-expected fiscal fourth quarter earnings.
Total revenue in the fourth quarter soared 51% to $14.1 billion from $9.3 billion, net income advanced to $4.3 billion from $3.5 billion, and diluted earnings per share rose 90 cents from 83 cents a year earlier.
"Broadcom's fiscal year 2024 revenue grew 44% year-over-year to a record $51.6 billion, as infrastructure software revenue grew to $21.5 billion, on the successful integration of VMware," said Hock Tan, President and CEO.
"Semiconductor revenue was a record $30.1 billion, driven by AI revenue of $12.2 billion. AI revenue, which grew 220 percent year-on-year, was driven by our leading AI XPUs and Ethernet networking portfolio," added Tan.
The company guided fiscal first quarter revenue of $14.6 billion and estimated adjusted operating earnings of 66% of projected revenue, indicating rising operating margin because of the sale of higher-value chips.
The company declared a quarterly cash dividend of 59 cents per share payable on December 31 to shareholders on record on December 23.
In the previous quarter, the chipmaker reported lukewarm revenue when adjusted for the purchase of VMware.
Consolidated revenue in the third quarter, including the latest acquisition of VMware, soared 47% to $13.1 billion from $8.9 billion, and excluding VMware, it rose 4% from a year ago, respectively.
Net income swung to a loss of $1.9 billion from a profit of $3.3 billion, and diluted earnings per share were a loss of 40 cents compared to a profit of 77 cents a year earlier.
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