Broadcom has experienced significant growth in 2025, outperforming major tech stocks, driven by its AI semiconductor business and strong financials. Despite its impressive performance and potential, the stock is considered expensive, trading at over 30 times projected earnings for 2027, making it a premium buy suitable for patient investors who believe in its long-term growth prospects.
Broadcom Inc. reported Q4 2023 earnings of $8.25 EPS, missing expectations of $10.95 EPS. The company's consolidated net revenue for the quarter was $9.3 billion, up 4% YoY. Semiconductor solutions revenue increased 3% YoY to $7.3 billion, while infrastructure software revenue grew 7% YoY to $2 billion. Broadcom expects its fiscal year 2024 consolidated revenue to be $50 billion, driven by the integration of VMware and growth in its semiconductor segment.
Marvell Technology reported a decline in net revenue for Q1 of fiscal year 2024, but still exceeded the midpoint of the company's guidance. The company's CEO, Matt Murphy, stated that AI has emerged as a key growth driver for Marvell, and the company is forecasting its AI revenue in fiscal 2024 to at least double from the prior year and continue to grow rapidly in the coming years. Marvell is expecting revenue growth to accelerate in the second half of this fiscal year, accompanied by gross and operating margin expansion.
