Cailian Press, December 13 (Editor: Liu Rui) After the market closed on Thursday Eastern Time, Broadcom announced better-than-expected fourth quarter Earnings Reports, with not only earnings performance exceeding expectations but also Broadcom's AI revenue more than doubling this year.

Even more surprising, the company's CEO revealed that Broadcom is developing customized AI Chips with three large cloud clients. This unexpected news drove Broadcom's stock price to surge over 15% in after-hours trading.

Broadcom publishes impressive Earnings Reports.

At the Earnings Reports release conference, Broadcom CEO Hock Tan stated that the company is developing customized AI Chips with three large cloud clients, causing the chip manufacturer's stock price to soar. The stock rose 13% in after-hours trading.

Broadcom's Earnings Reports show that in the fourth quarter ending November 3,

Broadcom's adjusted earnings per share were 1.42 dollars, better than the expected 1.38 dollars;

Broadcom's revenue was 14.05 billion dollars, an increase of 51% from 9.3 billion dollars in the same period last year, slightly below the expected 14.09 billion dollars.

The company's net income for the fourth quarter was 4.32 billion USD, or 0.90 USD per share, an increase of 23% compared to 3.52 billion USD and 0.83 USD per share in the same period last year.

Broadcom stated that it expects revenue of 14.6 billion USD in the next fiscal quarter, slightly better than analysts' average expectation of 14.57 billion USD.

AI revenue surged.

In the semiconductor solutions department, including AI Chips, revenue increased by 12% from 8.03 billion USD a year ago to 8.23 billion USD.

Broadcom indicated that the boom in generative AI infrastructure has led to a surge in demand for the company's Business. The company's AI revenue grew by 220% this year, reaching 12.2 billion USD. Some of this growth came from Ethernet network components used to connect thousands of AI Chips.

Broadcom expects that AI product revenue will grow by 65% year-on-year in the first fiscal quarter of 2025, far exceeding the overall 10% growth rate of its semiconductor solutions department.

Broadcom reported that its infrastructure Software department generated 5.82 billion USD in revenue this quarter, nearly doubling from 1.96 billion USD last year. This includes a boost from the acquisition of VMware for 69 billion USD, which was completed after the second quarter of last year.

Broadcom announced that it will raise its quarterly dividend by 11% to 59 cents per share in fiscal year 2025.

There are still huge opportunities in the next three years.

The CEO of Broadcom brought an even bigger surprise to investors during the earnings reports conference call. Tan revealed that Broadcom is currently developing AI Chips with three very large clients, and he expects that by 2027, each client will deploy 1 million AI Chips in their network clusters.

He stated, "We see huge opportunities in the AI field over the next three years… many hyperscale companies have begun their respective journeys to develop their own customized AI accelerators."

Tan indicated that by 2027, the total market opportunity for its AI Chips and AI network components could be between 60 billion and 90 billion dollars.

However, there is a potential bad news: Apple's ambition to use in-house components in its devices will include a shift to using its own developed Connection Chips for Bluetooth and Wi-Fi starting next year, replacing some components currently provided by Broadcom. Sources revealed that the chip codenamed Proxima has been in development for several years and is now planned for initial production in 2025. Like Apple's other in-house chips, Proxima will be produced by partner Taiwan Semiconductor.