Apple and other large Technology companies' chip supplier Broadcom reported better-than-expected earnings for the fourth quarter, driven by AI demand boosting growth.

The company stated on Thursday that the EPS, excluding certain items, was $1.42. Revenue rose to nearly $14.1 billion. Aggregated data showed the Analysts' previous average forecast for EPS was $1.39, with revenue at $14.1 billion.

Broadcom expects sales for the first quarter ending in January to reach $14.6 billion, in line with Analyst expectations.

Broadcom's Earnings Reports indicate that the demand for AI computing is offsetting slowdowns in Other areas. Like NVIDIA, Broadcom has also positioned itself as a major beneficiary of AI spending.

After the Earnings Reports were released, Broadcom's stock rose about 4% in after-hours trading. As of Thursday's close, the stock has increased by 62% since the beginning of 2024.

Investors have been buying Broadcom's Stocks this year, betting that the AI boom will drive a significant increase in sales. The company, headquartered in Palo Alto, California, had previously predicted it would gain over $10 billion in annual revenue from this market, surpassing Other sectors. Ultimately, this figure reached $12.2 billion in the last fiscal year.

The company’s CEO Chen Fuyang stated in a statement that AI revenue grew by 220% this year, driven by demand for AI processors and network components.

Broadcom's Semiconductors division generated $8.23 billion in revenue in the three months ending November 3, a 12% increase. Software sales nearly doubled, reaching $5.82 billion. The company's scale is much larger than a year ago, partly due to the approximately $69 billion acquisition of VMware Inc.