Broadcom will release its second quarter financial report for the 2024 fiscal year after market hours on June 12, with an expected increase in revenue compared to the previous quarter and the same period last year.

Analysts predict that Broadcom's revenue for the quarter will reach $12.04 billion, higher than the $11.96 billion in the previous quarter and $8.73 billion in the same period last year. This growth mainly comes from Broadcom's revenue in the field of artificial intelligence, especially its network infrastructure and semiconductor products applied in AI data centers.

The market also expects Broadcom to update its customized AI chip project with cloud service providers.

Financial forecast and adjusted data

Analysts predict that Broadcom's net profit in the second quarter will reach $2.22 billion, which is an increase from the previous quarter but lower than the $3.48 billion in the same period last year. Diluted earnings per share are expected to be $4.88, a decrease from $8.15 in the same period last year. After deducting one-time expenses, the non GAAP net profit is expected to be $5.33 billion, higher than the previous quarter's $5.25 billion and the same period last year's $4.49 billion.

AI drives semiconductor and network revenue

Tan Hock Eeng, CEO of Broadcom, said, "Our strong demand for network products in AI data centers and the demand for customized AI accelerators from large-scale operators are driving the growth of our semiconductor division."

Broadcom expects AI chip sales to reach $10 billion by 2024. Analysts predict that Broadcom Semiconductor's revenue will reach $7.12 billion, although slightly lower than the previous quarter, but higher than the $6.81 billion in the same period last year. The estimated online revenue is 4.93 billion US dollars, which has increased compared to the previous quarter and the same period last year.

Opportunities for cooperation with cloud service providers

Broadcom's niche market performance in the AI field is outstanding, especially its cooperation with Google, Meta, ByteDance and other consumer Internet giants. Analysts predict that if Broadcom can add a custom accelerator customer, AI revenue may approach $50 billion within the investable time frame.

Stock price performance and market response

Since the beginning of this year, the stock price of Broadcom has risen by nearly 29%. On June 6th, it closed at $1,400.74.