Broadcom reported Q2 consolidated revenue of $8.7 billion, up 8% year-over-year, and adjusted EBITDA margin of 65%.
“Broadcom’s second quarter results were driven by demand for next generation technologies from hyperscale, while enterprise and service providers continued to sustain,” said Hock Tan, President and CEO of Broadcom Inc. “Our third quarter outlook projects year-over-year growth, reflecting continued leadership in networking as we support a measured ramp into large scale AI networks.”
Some highlights
- Semiconductor solutions revenue increased 9% yoy to $6.8 billion
- Infrastructure software solutions grew 3% yoy to $1.9 billion
- Networking revenue was $2.6 billion, up 20% year-on-year, representing 39% of semiconductor revenue. There are 2 growth drivers here (1) continue growth in merchant deployments of Tomahawk and Jericho switching and routing (2) strong hyperscaler growth in AI infrastructure solutions from compute offload and networking, including 800G solutions.
- About 15% of the semiconductor business currently supports generative AI use cases and the company expects this to reach 25% next year.
- Broadband revenue grew 10% year on year to $1.2 billion. Growth drivers included 10G PON and DOCSIS solutions.
- Broadcom’s CEO Hock Tan also noted that the company’s pending acquisition of VMware is on track and the completion is expected this fiscal year.
