Broadcom Inc

Strong Revenue Growth: Broadcom reported a record revenue of $15 billion for Q2 FY2025, representing a 20% year-on-year (YOY) growth. This growth was fueled by robust demand in AI semiconductors, particularly with AI semiconductor revenue rising to over $4.4 billion, up 46% YOY. The expectation for Q3 is to continue this momentum, projecting consolidated revenue of approximately $15.8 billion, up 21% YOY.

Positive Outlook for AI Semiconductors: Management forecasted AI semiconductor revenue to reach $5.1 billion in Q3 FY2025, reflecting a 60% increase YOY, marking the 10th consecutive quarter of growth for this segment. Such strong momentum is anticipated to extend into FY2026 due to increased demand for both training and inference workloads, indicating a solid growth trajectory.

Challenges in Non-AI Semiconductors: The non-AI semiconductor segment experienced a decline in revenue, posting $4 billion, which was down 5% YOY. Although there were bright spots in broadband and enterprise networking, challenges persist in wireless and industrial sectors. The expectation for Q3 indicates flat revenues for non-AI semiconductors, suggesting the need for recovery in these segments.