Broadcom Q1 Revenue Hits $14.92B, Up 25% YoY

Broadcom has announced its first-quarter fiscal results for FY 2025, covering the period ending February 2, 2025. The company achieved a revenue of $14.92 billion, marking a 25% increase compared to the same period last year, surpassing the forecast of $14.61 billion. The GAAP net income for Q1 stood at $5.503 billion, while the non-GAAP net income was $7.823 billion.

For Q2 2025, Broadcom anticipates revenue to reach approximately $14.9 billion, reflecting a 19% year-over-year increase.

Broadcom's President and CEO, Hock Tan, stated, “Our record Q1 revenue was driven by the dual forces of AI semiconductor solutions and infrastructure software. AI revenue surged 77% year-over-year, reaching $4.1 billion, while infrastructure software revenue rose 47% to $6.7 billion.”

Broadcom has seen a surge in demand from cloud computing companies for custom AI chips as they expand their AI infrastructure. These companies are increasingly seeking alternatives to expensive processors designed by Nvidia. Hock Tan further added that with large-scale customers investing in data center custom AI chips, the company expects its AI semiconductor revenue to reach $4.4 billion in Q2.

Analysts predict that as the computational needs of AI tasks become more complex and specialized, large tech companies will shift from off-the-shelf chips to custom processors, benefiting Broadcom in the process.

In February, it was reported that OpenAI is partnering with Broadcom to complete its first custom chip design, reducing its reliance on Nvidia.