周五，在Wall Street gasps, "The next NVIDIA?"
Under the craze of AI, the madness of chip giants is unstoppable.
In addition to the leading giant NVIDIA singing all the way, Broadcom is also stepping on the gas.
On Friday, driven by earnings reports that greatly exceeded expectations and strong future guidance, Broadcom surged over 24% overnight, leading the rally in USA technology stocks, and its market cap also broke through the 1 trillion USD milestone for the first time.
So far this year, Broadcom's stock price has cumulatively risen over 103%.
Among the top 10 companies by total market cap in the USA, Broadcom's performance this year is second only to NVIDIA (with a total increase of 171%), far ahead of other technology stocks, becoming the ninth publicly listed company in the USA with a market cap exceeding 1 trillion USD.
AI revenue skyrocketed by 220%.
Broadcom's latest Earnings Reports show that revenue for the fourth quarter of fiscal year 2024 was 14.054 billion USD, an increase of 51% compared to the same period last year.
Under GAAP, Net income was 4.324 billion USD, and under non-GAAP it was 6.965 billion USD. The adjusted non-GAAP diluted earnings per share was 1.42 USD, exceeding expectations of 1.38 USD.
Among them,The Semiconductors divisionRevenue increased by 12% year-on-year to 8.23 billion USD.The Infrastructure Software divisionRevenue increased by 196% year-on-year to 5.82 billion USD.
In the fiscal year 2024, revenue reached $51.6 billion, a year-on-year increase of 44%, setting a new record.
Among them,AI revenue surged 220% year-on-year to $12.2 billion., driving Semiconductor Business revenue to a new high of $30.1 billion.
Adjusted EBITDA grew 37% year-on-year, reaching a record high of $31.9 billion. Excluding restructuring, free cash flow was strong at $21.9 billion.
In terms of performance guidance, Broadcom expects revenue of $14.6 billion for the first quarter of fiscal year 2025, a year-on-year increase of 22%, aligning with the expected $14.61 billion.
Adjusted EBITDA is expected to account for 66% of revenue, an increase of one percentage point compared to Q4 FY2024. Sales of AI products are expected to grow by 65%.
Broadcom CEO Hock Tan emphasized during the Earnings Reports conference call that "there is a great opportunity for AI Chips in the next three years."
He also predicted that by 2027, the market demand for custom AI chip ASICs would range from 60 billion to 90 billion USD. In terms of AI Chips, Broadcom has two additional super clients, expected to generate revenue before 2027.
Is there a next "NVIDIA"?
Currently, Wall Street is excited about Broadcom's future prospects.
Analysts generally believe that Broadcom's recent performance has eased market concerns about short-term results, while the company's long-term plans for AI Chips have further stimulated investor enthusiasm.
Morgan Stanley analysts said that Tesla is about to undergo a radical shift from selling cars to generating high-margin software and services businesses. It is said that Broadcom's perspective on AI will further enhance market optimism regarding its long-term prospects. It is predicted that in the next two to three years, Broadcom will continue to be one of the "most attractive choices" for investing in AI Semiconductors.
Bernstein.Analysts have also stated that despite the tense market sentiment before the Earnings Reports release, Broadcom's performance is satisfactory, instilling confidence in the management's short-term and long-term vision for the AI Business.
Overall, the AI story seems to be really starting to take effect.
They have raised Broadcom's Target Price from $195 to $250 and humorously mentioned that Chen Fuyang might follow NVIDIA CEO Jensen Huang's iconic jacket style.
Bank of America.has also reiterated its 'Buy' rating on Broadcom, partly due to the company's enormous potential in the AI field.
Analysts pointed out that Broadcom currently dominates the customized chip market, but also warned of fierce competition with NVIDIA in the commercial chip and enterprise client sectors.