Broadcom reported results for its third quarter of fiscal year 2021, ended August 1, 2021, and provided guidance for the fourth quarter of its fiscal year 2021.
Broadcom’s revenue grew 16 percent to $6.8 billion and operating profit increased 24 percent with adjusted EBITDA margin a record 61 percent in the third quarter ended Aug. 1.
Broadcom forecasts fourth-quarter revenue of $7.35 billion expecting 14 percent increase, betting on strong demand for its semiconductors from the adoption of 5G technology and a shift to hybrid work models.
Broadcom Chief Executive Officer Hock Tan attributed the performance to demand from cloud, 5G, broadband and wireless segments.
“Broadcom delivered record revenues in Q3 reflecting product and technology leadership across secular growth markets in cloud, 5G infrastructure, broadband, and wireless,” said Hock Tan, President and CEO of Broadcom.
Broadcom’s efforts to diversify revenue by enhancing investments in its software business have insulated the company from being heavily impacted by supply chain disruptions.
Broadcom’s wireless business division, which counts Apple as a major customer, also stands to benefit from the latest iPhones expected to be launched this month.
The 5G transition, which is in its nascent stage, is likely to boost demand for Broadcom’s radio frequency and wireless chips that help devices connect to Bluetooth and Wi-Fi.
The company, which made a failed to attempt to buy Qualcomm, also make chips for data centers and servers, which means the migration to cloud and a rebound in enterprise spending will benefit Broadcom in a post-pandemic world as many companies embrace a hybrid model of working.