Broadcom Reports 22% Revenue Growth, Raises $17.4B Q4 Outlook

Broadcom Inc. has reported strong financial results for the third quarter of fiscal 2025, with revenue reaching $15.95 billion, a 22% increase year-over-year, and non-GAAP earnings per share of $1.69, surpassing analyst expectations. The company anticipates fourth-quarter revenue of approximately $17.4 billion, exceeding Wall Street estimates, driven by accelerating growth in AI semiconductor revenue, which is expected to reach $6.2 billion. Broadcom's CEO highlighted the continued strong investment from customers in AI technologies, contributing to eleven consecutive quarters of growth. Analysts maintain an overall positive outlook on the stock, with an average price target near $303 and a consensus rating of 'Outperform,' though some valuation concerns persist due to a high price-to-earnings ratio and volatility. The company’s efficient inventory management and sustained compound annual growth rate of over 20% in recent years underscore its robust operational performance. Broadcom's strategic focus on custom AI accelerators, networking, and software solutions, including VMware, supports its optimistic growth trajectory.