Semiconductor giant $Broadcom (AVGO.US)$ Will announce its financial performance for the third quarter of the 2024 fiscal year on Thursday, September 5th in the U.S. post-market trading. According to the financial analysis platform Visible Alpha's forecast, the market generally expects Broadcom's revenue for this quarter to reach $13.04 billion, compared to $8.88 billion in the same period last year, achieving significant growth. However, the net income is expected to decrease from $3.3 billion in the same period last year to $2.94 billion, resulting in a decrease in earnings per share (EPS) as well. It is worth noting that Broadcom conducted a 10-for-1 stock split this summer.
In the upcoming financial report, the performance of artificial intelligence (AI) related business will undoubtedly become the market's focus. Investors will closely monitor Broadcom's sales performance and future prospects in the AI field, as well as whether new AI chip customers will join, especially the rumored ChatGPT manufacturer OpenAI.
Key Indicator: AI-related Sales
Broadcom has benefited from the rapid development of AI by providing custom AI chips and other products to technology giants. According to Visible Alpha's general expectations, analysts expect Broadcom's AI-related sales to reach $3.25 billion, more than triple the amount from the same period last year, and achieve a sequential growth.
Analysts at UBS Group this week pointed out that Broadcom's AI-related business unit and the integration of the software company VMware acquired last year are the main drivers for the company's sustained growth.
As Broadcom may raise its annual revenue expectations for its artificial intelligence-related business, the market will closely watch for further developments in the AI field. In the previous quarter, Broadcom has already raised its annual revenue expectations from $10 billion to $11 billion, but considering analysts' optimistic forecasts for the third quarter, there seems to be room for further upward adjustment.
Business Focus: OpenAI may become a new customer for AI chip.
Analysts at Citigroup said on Thursday that they believe Broadcom has won support from Microsoft-backed OpenAI as its new customer for customized AI chips, and may announce this collaboration in the upcoming financial report.
Broadcom's position in the AI field is achieved by helping large technology companies create custom chips specifically designed for running artificial intelligence workloads. Currently, Broadcom has designed such chips for companies including Google (a subsidiary of Alphabet), Meta Platforms (formerly known as Facebook), and ByteDance, the parent company of TikTok.
Editor/Lambor