#BroadcomEarnings #AIChipMarket #OpenAI
Broadcom Inc. ($AVGO) is poised to release its highly anticipated third-quarter 2024 earnings report today, September 5, 2024. The semiconductor giant has been a key player in the artificial intelligence (AI) chip market, and investors are eagerly awaiting updates on its AI sales growth and full-year AI revenue outlook.
Earnings Expectations
Analysts expect Broadcom's revenue to grow significantly, with estimates ranging from $12.96 billion to $13.04 billion, up from $8.88 billion in the year-ago period. Net income is projected to be $2.94 billion, down from $3.3 billion in the same period last year. Diluted earnings per share (EPS) are expected to fall, with estimates ranging from $0.64 to $0.63 per share.
AI-Related Sales
Broadcom has been a significant beneficiary of the AI boom, offering custom AI chips to tech giants such as Alphabet's Google, Meta Platforms, and TikTok owner ByteDance. Analysts expect AI sales to grow to $3.25 billion, more than triple the year-ago period, and representing sequential growth. UBS analysts have identified Broadcom's AI-related segments, as well as the integration of VMware, a software firm acquired last year, as the primary drivers of sequential growth.
OpenAI as a New AI Chip Customer
Citi analysts believe that Broadcom has secured Microsoft-backed OpenAI as a new AI custom chip customer and could announce the deal in its earnings report. This potential partnership would further solidify Broadcom's position in the AI space.
Stock Performance
Broadcom shares have seen significant growth this year, finishing up nearly 4% on the day and more than 40% year-to-date.
Earnings Call
The company will report its third-quarter 2024 results today at 4:15 pm ET. Investors can listen to the live earnings call and check the real-time transcript for further insights.
Original Article: https://www.cnbc.com/2024/09/05/broadcom-avgo-earnings-report-q3-2024.html
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