Broadcom Q4 Earnings Preview: AI Surge Poised to Lift Revenue

Broadcom (NASDAQ:AVGO) is set to report its fourth-quarter fiscal 2024 earnings today, and expectations are high.

The company projects revenue of about $14 billion. Wall Street's consensus is slightly higher at $14.06 billion, reflecting a 51.29% jump from last year’s figure.

The surge is powered by Broadcom’s growing footprint in Artificial Intelligence (AI) and Generative AI. Its Semiconductor segment is leading the charge, thanks to strong demand for custom AI accelerators, AI networking gear, Ethernet switches, optical lasers, and PCI Express switches. Hyperscale clients are key drivers of this growth.

Notable partnerships with tech giants Alphabet (NASDAQ:GOOGL) and Meta Platforms (NASDAQ:META) further boost Broadcom’s AI momentum. Alphabet relies on Broadcom’s application-specific integrated chips (ASICs) to support machine learning. Meanwhile, Meta uses these chips to develop Metaverse hardware, underscoring Broadcom’s role in next-gen tech.

Broadcom’s diverse client base adds to its strength. It works with Comcast (NASDAQ:CMCSA), Charter Communications, Microsoft, Arista Networks, Dell, Juniper, and Supermicro. Its collaborations with Comcast and Charter on Unified DOCSIS chipsets are particularly noteworthy. These chipsets will support faster internet speeds—up to 25 Gbps—using existing network infrastructure.

Recent deals include an expanded partnership with Deutsche Telekom’s T-Systems, which became a top-tier VMware Cloud Service Provider. This move strengthens Broadcom’s cloud-related revenue streams.

Analysts expect Broadcom’s AI-driven semiconductor sales to boost its stock post-earnings. With a strong customer roster and growing demand for AI solutions, Broadcom’s fourth-quarter results could signal further growth ahead.

All eyes are on today’s report to see if Broadcom can meet or exceed the $14.06 billion revenue forecast. A beat could provide fresh momentum for AVGO shares.