(AOF) – Broadcom shares (-2.91% to $1,366) are pushed back to penultimate place in the S&P 500. The technology group’s semiconductor business disappointed in the first quarter, which ended at the beginning of February. . It reported revenue of $7.39 billion, missing the $7.7 billion consensus. Broadcom has, however, experienced an acceleration in the growth in demand for its chips for artificial intelligence applications. They generated $2.3 billion over this period, an increase of 50% compared to the previous quarter, underlines JPMorgan.
“I know we told you in December that our AI revenue would represent 25% of our semiconductor revenue this year. We now expect AI revenue to be much larger, representing about 35% of semiconductor revenues at over $10 billion,” CEO Hock Tan explained during the analyst conference.
Broadcom thus confirmed its forecast of a turnover of around $50 billion in 2024, representing growth of 40%. This objective includes VMware, whose acquisition has been finalized.
Earnings per share exceeds expectations
In the first quarter, ended at the beginning of February, the group present in semiconductors and software made a net profit of 1.325 billion dollars, or 2.84 dollars per share, to compare with a net profit of 3.77 billion dollars, or $8.80 per share, a year earlier. Excluding one-off items, earnings per share reached $10.99, beating the consensus of $10.42. For UBS, Broadcom exceeded expectations with significant savings. Sales jumped 34% to $11.961 billion while the market was targeting $11.8 billion.
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