Broadcom reported a 47% year-on-year revenue growth for its third quarter, bolstered by its acquisition of VMware.
The company’s revenue reached $13.07 billion, with $7.25 billion coming from its Semiconductor Solutions division and $5.8 billion from its Infrastructure Software sector, including $3.8 billion from VMware.
VMware’s contribution reflects Broadcom’s ongoing turnaround efforts, with CEO Hock Tan noting an acceleration in VMware bookings and a reduction in costs from $1.6 billion in Q2 to $1.3 billion this quarter. Tan also highlighted strong sales growth for VMware Cloud Foundation, which validates the changes in VMware’s licensing and business model.
Despite the positive revenue numbers, Broadcom posted a loss of nearly $2 billion due to a $4.5 billion tax liability related to intellectual property transfers. However, using non-GAAP principles, the company recorded a net income of $6.1 billion.
Broadcom’s AI-related silicon business saw significant growth, with $3.1 billion in revenue coming from AI products and sales of custom AI accelerators growing 3.5 times year-on-year. CEO Tan projected $12 billion in AI-related silicon revenue for the year but acknowledged a downturn in non-AI silicon markets, which he expects to recover by Q4.
Broadcom’s stock, which began the day at around $153, dipped to $142.50 in after-hours trading following the announcement.
