Avgo earnings beat sends stock soaring as AI chip demand explodes past Wall Street expectations
- Broadcom (AVGO) crushed earnings estimates for its fiscal first quarter, reporting $13.07 billion in revenue versus the expected $12.63 billion, fueled by a 125% surge in AI chip sales to $4.1 billion.
- CEO Hock Tan confirmed that AVGO’s custom AI accelerators are now powering “hyperscale” data centers for undisclosed tech giants, with a backlog for next-gen chips extending into 2026.
- The company raised its full-year AI revenue guidance to a whopping $15 billion, up from a previous $14 billion, signaling unrelenting demand from cloud providers racing to build out generative AI infrastructure.
- AVGO’s networking division also stunned investors, with a 30% quarterly jump in sales for AI-optimized switches and routers, suggesting the company is capturing a larger slice of the AI hardware ecosystem.
- Shares jumped 8% in after-hours trading, pushing AVGO’s market cap past $1.2 trillion, as analysts at Morgan Stanley called this “the strongest AI earnings beat of 2025 so far.”