Broadcom Soars to Record-Breaking Heights: Q4 2024 Earnings Exceed Expectations

Broadcom Inc., a leading technology company, has reported its strongest fiscal year yet with consolidated revenue growing 44% year-over-year to a record $51.6 billion in Q4 2024.

In a conference call on December 12, 2024, Broadcom's President and CEO Hock Tan highlighted the company's transformative year, citing two significant drivers of growth: the integration of VMware and strength in Artificial Intelligence (AI).

Following the acquisition of VMware, the technology leadership in data center virtualization has been focused, with operating margin reaching a staggering 70% exiting 2024. The integration is largely complete, and revenue is on a growth trajectory.

Broadcom's AI revenue, driven by custom AI accelerators (XPUs) and networking, grew an impressive 220% from $3.8 billion in fiscal '23 to $12.2 billion in fiscal '24. This remarkable growth accounted for 41% of the company's semiconductor revenue.

In Q4, Broadcom's consolidated net revenue reached $14.1 billion, up 51% year-over-year, with operating profit growing 53% to $8.8 billion. The infrastructure software segment saw revenue soar by 196% year-over-year to $5.8 billion in Q4.

VMware, a significant contributor to Broadcom's growth story, reported annualized booking value (ABV) of $2.7 billion in Q4, up from $2.5 billion in the preceding quarter. With over 4,500 customers signed up for VMware Cloud Foundation (VCF), the company is driving down spending while delivering strong revenue and profitability.

The semiconductor business also saw significant growth, with networking revenue growing 45% year-over-year to $4.5 billion in Q4. AI networking revenue, representing 76% of networking, grew a remarkable 158% year-over-year.

Broadcom's future outlook appears bright, with expectations for Q1 revenue to grow 11% sequentially and 41% year-over-year to $6.5 billion. VMware's ABV is expected to exceed $3 billion, solidifying the company's position as a leader in data center virtualization.

The remarkable growth and profitability of Broadcom serve as a testament to the company's ability to innovate and execute on its strategic plans. With a strong foundation and exciting prospects ahead, investors and industry observers alike will be keenly watching Broadcom's future performance.