Driven by robust expansion in its artificial intelligence business, Broadcom Inc. (AVGO, Financials) announced a 51% year-over-year rise in sales for its fiscal fourth quarter. By fiscal 2027, the corporation estimates that its income connected to artificial intelligence might reach $50 billion yearly. Apart from the stellar results, which beat analyst estimates handsomely, AVGO also unveiled guidance that the Street appreciated, sending the stock northward; last changing hands for $224.66.
Driven mostly by its AI division, Broadcom reported $14.05 billion in sales for the quarter, a notable year-over-year gain. According to the corporation, income connected to artificial intelligence jumped 220% in fiscal 2024 to $12.2 billion.
CEO Hock Tan emphasized Broadcom's aspirations in artificial intelligence, speculating that by fiscal 2027 the market for AI accelerators might reach $60 billion to $90 billion. This puts Broadcom in a position to profit from the increased need for next-generation chipsets and infrastructure solutions, hence driving the development of the artificial intelligence sector.
The strong earnings announcement set off over a 20% increase in Broadcom's stock price, thereby driving the company's market value past $1 trillion. To reach this value, Broadcom is among a small handful of U.S. companies—including Apple (AAPL, Financials) and Nvidia (NVDA, Financials).
Analysts changed Broadcom's price estimates affirmatively after the results released. Maintaining a "buy" rating, Citi changed its target price from $205 to $220; Bank of America lifted its estimate from $215 to $250. Particularly positive, Mizuho analysts set a price target of $245 and projected AI revenue might surpass $50 billion by fiscal 2027.
