Broadcom reported better-than-expected third quarter results and cited strong demand for custom AI accelerators, networking and VMware.
The company reported third quarter earnings of $4.14 billion, or 85 cents a share, on revenue of $15.95 billion, up 22% from a year ago. Non-GAAP earnings were $1.69 a share.
Wall Street was expecting Broadcom to report non-GAAP earnings of $1.66 a share on revenue of $15.82 billion.
CEO Hock Tan said third quarter AI revenue was $5.2 billion, up 63% from a year ago. "We expect growth in AI semiconductor revenue to accelerate to $6.2 billion in Q4, delivering eleven consecutive quarters of growth, as our customers continue to strongly invest," said Tan.
Broadcom is a design partner for Google's Tensor Processor Units. Google announced its TPUs in 2016.
In the quarter, semiconductors represented 57% of sales with revenue of $9.17 billion, up 26% from year ago. Infrastructure software was 43% of sales with revenue of $6.79 billion, up 17% from a year ago.
As for the outlook, Broadcom projected fourth quarter revenue of $17.4 billion with adjusted EBITDA at 67% of projected revenue.