Broadcom Inc. reported a record revenue of $51.6 billion for fiscal year 2024, driven by a 220% surge in AI revenue and a 51% increase in quarterly revenue. The company noted significant growth in both semiconductor and infrastructure software sectors, highlighting its position in the AI market.
Broadcom reports record $51.6 billion revenue, AI growth surges 220%
For Q4 2024, Broadcom’s revenue reached $14.1 billion, marking a 51% increase year-over-year from $9.3 billion. The company reported an operating profit of $8.8 billion for the same quarter, which represents a 53% year-on-year growth. Net income for Q4 stood at $4.32 billion, equating to 90 cents per share, up from $3.52 billion or 83 cents per share in Q4 2023.
In fiscal 2024, semiconductor revenue was $30.1 billion, of which $8.2 billion was generated in Q4, reflecting a 12% year-over-year increase. Infrastructure software revenue reached $5.8 billion in Q4, nearly tripling from the previous year when it generated $1.96 billion.
The gross margin for Q4 was reported at 76.9%, which is an increase of 260 basis points compared to the same period last year. Free cash flow amounted to $5.5 billion, accounting for 39% of the total revenues.
Record growth in AI revenue
Broadcom’s AI revenue reached $12.2 billion in fiscal 2024, a remarkable uptick from $3.8 billion in the previous fiscal year. This growth signifies a 220% year-on-year increase, representing 41% of the total semiconductor revenue. CEO Hock Tan emphasized the potential of custom AI chips currently in development for three large cloud customers, anticipating that these clients will deploy 1 million AI chips in networked clusters by 2027. The company estimates the market opportunity for AI chips and networking components could range between $60 billion and $90 billion by fiscal 2027.
While the AI segment thrived, non-AI semiconductor revenue experienced a decline of 23% year-over-year. Broadcom’s broadband revenue also faced challenges, dropping to $465 million in Q4, a 51% decrease compared to last year, indicating potential hurdles in maintaining revenue growth across all segments.
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Financial outlook and shareholder returns
For Q1 of fiscal 2025, Broadcom has provided guidance of approximately $14.6 billion in revenue, which marks a projected 22% increase from the same quarter last year. The semiconductor revenue is expected to reach about $8.1 billion, demonstrating an estimated 10% year-on-year growth, while infrastructure software revenue is forecast to be around $6.5 billion, up 41% year on year. The company anticipates an adjusted EBITDA margin of around 66% of revenue.
Broadcom has returned a record $22 billion in cash to shareholders through dividends and share buybacks in fiscal 2024, representing a 45% increase year-on-year. The company announced an 11% increase in its quarterly dividend to 59 cents per share for fiscal 2025.
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Featured image credit: Broadcom
