On Friday, March 7, 2025, Broadcom (NASDAQ: AVGO) shares surged 6% after the chipmaker delivered a first-quarter earnings beat and upbeat guidance that reaffirmed its AI dominance. Reporting adjusted earnings of $1.60 per share on $14.92 billion in revenue—topping LSEG’s $1.49 EPS and $14.61 billion forecasts—the San Jose giant saw revenue climb 25% from $11.96 billion a year ago. With net income soaring to $5.5 billion ($1.14 per share) from $1.33 billion (28 cents), Broadcom offered a rare bright spot in a tech earnings season plagued by high bars and post-result slumps.
AI Fuels the Fire
Broadcom’s AI revenue—a lifeline amid the ChatGPT-driven boom—rocketed 77% to $4.1 billion, powering its semiconductor solutions unit (up 11% to $8.21 billion). CEO Hock Tan projected $4.4 billion in AI chip sales this quarter, buoyed by custom designs for three major cloud clients and “deep engagement” with two more hyper scalers, plus talks with four others. Bank of America’s Vivek Arya dubbed it a “reassuring update from an AI leader,” a sentiment echoed on X: “Broadcom’s AI pipeline is a beast—tariffs be damned.”
Since ChatGPT’s 2022 debut, Broadcom’s stock doubled in 2024, though it’s down 19% in 2025 as Trump’s tariff threats rattle chipmakers reliant on non-U.S. parts. Unlike Marvell Technology, which tanked 20% Thursday—its worst drop since 2001—after missing lofty buy-side targets, Broadcom’s $14.9 billion current-quarter forecast (versus $14.76 billion expected) restored some faith.
A Sector Sigh of Relief
Morgan Stanley’s Joseph Moore wrote, “The [quarter] should provide some relief after the MRVL disappointment.” Broadcom’s custom AI chips for data centers—backing large language models—position it as a linchpin for hyper scalers like Microsoft and Meta (think CoreWeave’s IPO buzz this week). Moore highlighted optimism around its serviceable addressable market and new clients—“customers 6 and 7”—as a long-term growth tailwind.
The chip sector’s been a minefield this earnings cycle. Even beats haven’t spared names like MongoDB (down 20% on weak guidance) or Tesla (a 7-week skid). Broadcom’s resilience—shares hit $175 post-earnings from $165—offers a counterpoint, though tariff risks linger with its Taiwan-sourced components.
What’s Next for Broadcom in 2025?
Today’s rally nudges Broadcom’s market cap toward $780 billion, a balm after a rocky start to the year. With MWC 2025 wrapping (Samsung’s trifolds, Lenovo’s solar PCs), Broadcom’s AI chip momentum could counter tariff jitters—especially if Friday’s White House Crypto Summit hints at tech-friendly policies. Will it reclaim its 2024 peak ($225)? Analysts like Arya see a $200-plus path if AI demand holds. For now, it’s a tech lifeline—stay tuned for Q2 clues and tariff fallout!
