Broadcom said its revenue grew 8 percent to $8.7 billion for its second quarter of fiscal year 2023, ended April 30, 2023.
Broadcom has generated revenue of $6.808 billion (+9 percent) from Semiconductor solutions and $1.925 billion (+3 percent) from Infrastructure software.
“Broadcom’s second quarter results were driven by demand for next generation technologies from hyperscale, while enterprise and service providers continued to sustain,” said Hock Tan, President and CEO of Broadcom, in its earnings report.
“Our third quarter outlook projects year-over-year growth, reflecting continued leadership in networking as we support a measured ramp into large scale AI networks.”
The San Jose, California-based Broadcom is targeting revenue of approximately $8.85 billion and Adjusted EBITDA of approximately 65 percent of projected revenue for the third quarter of fiscal year 2023, ending July 30, 2023.
The success of ChatGPT has sparked a surge in orders for chips that underpin the technology at big data centers.
Hock Tan said generative AI could account for more than 25 percent of the company’s semiconductor revenue in 2024.
Broadcom’s revenue from AI opportunity represents about 15 percent of semiconductor business against only 10 percent in fiscal 2022.
Broadcom supplies chips used in data centers for networking and specialized chips that speed up AI work. In April, Broadcom released a new chip called Jericho3-A enabling the industry’s highest performance fabric for artificial intelligence (AI) networks.
The Jericho3-AI fabric offers 26 petabits per second of Ethernet bandwidth, almost four times the bandwidth of the previous generation, while simultaneously delivering 40 percent lower power per gigabit. Jericho3-AI fabric provides the highest performance while also enabling the lowest total cost of ownership.
Global spending on AI will reach $154 billion in 2023 and $300 billion or more by 2026. The 2023 figure represents an increase of 26.9 percent over 2022, according to International Data Corporation (IDC).