(AOF) – Semiconductor maker and infrastructure software maker Broadcom reported better-than-expected profits and targets. In the first quarter, which ended at the end of January, the group made net profit of $3.77 billion, or $8.80 per share, compared with net profit of $2.47 billion, or $5.59. per share, a year earlier. Excluding exceptional items, earnings per share reached $10.33, compared to the Bloomberg consensus of $10.16.
Broadcom’s sales rose 16% to 8.915 billion dollars while the market was targeting 8.9 billion.
In the second quarter, the technology group is aiming for a turnover of around 8.7 billion dollars, higher than Wall Street’s expectations: 8.58 billion dollars.
Broadcom will pay a dividend of $4.60 per share.
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Growing market and price pressures
According to the SIA, global chip sales were $151.7 billion in the first quarter of 2022, up 23% year-on-year. Sales increased in all major regional markets and for all product categories. As global uncertainties, including the war in Ukraine and the health crisis, weigh on supply chains, demand for semiconductors continues to significantly outpace supply. Manufacturers Samsung and TSMC have announced that they will raise their prices, in a context where players in the sector have good leeway and benefit from increased bargaining power. However, wage increases and component prices could weigh on future performance.