Broadcom reported $15 billion in Q2 FY2025 revenue, marking a 20% year-over-year increase driven largely by continued demand for AI-related infrastructure. The company said its AI semiconductor revenue hit $4.4 billion in the quarter, up 46% from a year earlier. CEO Hock Tan projected that figure would rise to $5.1 billion in Q3, attributing the acceleration to ongoing investments by hyperscale cloud providers in next-gen data centers and AI network fabrics.
Semiconductor Solutions revenue grew 17% year-over-year to $8.4 billion, accounting for 56% of total revenue. Broadcom’s Infrastructure Software segment, bolstered by the integration of VMware, grew even faster at 25%, reaching $6.6 billion. Overall, adjusted EBITDA rose to $10 billion—67% of revenue—while free cash flow hit a record $6.4 billion, up 44% year-over-year. Broadcom returned $7 billion to shareholders during the quarter through dividends and stock repurchases.
Looking ahead, Broadcom guided Q3 revenue to $15.8 billion, which would represent 21% annual growth. Adjusted EBITDA for the next quarter is expected to remain strong at a minimum of 66% of revenue, reflecting operational leverage in both AI chip design and infrastructure software. Capital expenditures remained modest at $144 million, reinforcing Broadcom’s asset-light strategy even as it scales to meet rising AI infrastructure demands.
• Q2 AI semiconductor revenue: $4.4B (+46% YoY)
• Projected Q3 AI semiconductor revenue: $5.1B
• Total Q2 revenue: $15.0B (+20% YoY)
• Adjusted EBITDA: $10.0B (67% of revenue)
• Free cash flow: $6.4B (+44% YoY)
• Semiconductor Solutions: $8.4B revenue (+17% YoY)
• Infrastructure Software (incl. VMware): $6.6B (+25% YoY)
• Q3 revenue guidance: $15.8B; EBITDA margin guidance: ≥66%
“We achieved record second quarter revenue on continued momentum in AI semiconductor solutions and VMware,” said Hock Tan, President and CEO of Broadcom Inc. “Our hyperscale partners are driving sustained demand as they scale AI infrastructure.”
