Broadcom Beats Third-Quarter Revenue Estimates

Strong Demand for Chips and Software Drives Growth

Key Financial Highlights

* Revenue: $8.93 billion, up 23% year-over-year * Net income: $3.34 billion, up 31% year-over-year * Diluted earnings per share: $8.49, up 32% year-over-year

Broadcom Inc. (AVGO), a leading semiconductor and infrastructure software company, reported strong financial results for the third quarter of fiscal 2023, beating analysts' revenue estimates.

The company's revenue grew 23% year-over-year to $8.93 billion, driven by strong demand for its chips and software products. Net income rose 31% to $3.34 billion, and diluted earnings per share increased 32% to $8.49.

Growth Drivers

Broadcom's growth was primarily driven by the following factors:

• Increased demand for data center chips: The growing adoption of cloud computing and artificial intelligence (AI) is driving demand for Broadcom's data center chips, which are used in servers and other data center equipment.
• Strong performance in the software business: Broadcom's software business, which includes enterprise software and cybersecurity solutions, continued to grow rapidly, contributing to the company's overall revenue increase.
• Acquisitions: Broadcom's recent acquisitions, including VMware and Symantec, have expanded its product portfolio and contributed to its growth.

Outlook

Broadcom provided a positive outlook for the fourth quarter of fiscal 2023, expecting revenue to be in the range of $8.90 billion to $9.15 billion. The company also announced a $10 billion share repurchase program.

Analyst Commentary

Analysts praised Broadcom's strong financial performance and positive outlook. They noted that the company is well-positioned to benefit from the ongoing growth in the semiconductor and software industries.

According to John Pitzer, an analyst at Credit Suisse, "Broadcom's third-quarter results were impressive, demonstrating the company's ability to execute in a challenging macroeconomic environment. The company's strong demand for its products and its focus on innovation position it well for continued growth in the future."