Broadcom, a leading semiconductor company, said revenue rose 25 percent to $8.464 billion in its third quarter of fiscal year, ended July 31, 2022.
Broadcom generated revenue of $6.62 billion (+32 percent) from Semiconductor solutions and $1.84 billion (+5 percent) from Infrastructure software business.
Broadcom’s record third quarter results were driven by robust demand across cloud, service providers, and enterprise.
Broadcom forecast revenue of $8.9 billion for the fourth quarter of fiscal year 2022, ending October 30, 2022.
Hock Tan, President and CEO of Broadcom, said: “We expect solid demand across our end markets to continue in the fourth quarter, reflecting continued investment by our customers of next generation technologies in data centers, broadband, and wireless.”
Companies are increasingly investing in the infrastructure needed to support a switch to hybrid work models, giving Broadcom – which makes chips for data centers, routers and Wi-Fi modems – an edge over competitors with more exposure to smartphones and PCs.
Rivals Intel, Advanced Micro Devices (AMD), Qualcomm and Nvidia have all issued demand warnings as consumers spend less on PCs, gaming devices and smartphones in the face of red-hot inflation.
Premium phones sales have so far held steady, however, as higher-income customers remain relatively unscathed. That has helped Broadcom, which counts Apple as a major customer, forecast a 20 percent sequential jump in current-quarter wireless revenue.
Broadcom may experience some weakness in demand in the upcoming quarters as enterprise, cloud and service providers are likely to moderate their orders and Capex spending into 2023, said Summit Insights analyst Kinngai Chan.