Broadcom aims to increase network revenue by 20 with AI

Broadcom aims to increase network revenue by 20% with AI boom

The excitement surrounding generative artificial intelligence (AI) systems will allow Broadcom to capitalize on it in the near future, according to management. In the current quarter in particular, revenue from the supply of components for network equipment may increase sequentially by 20%. According to the head of the company, the demand for these components will grow exponentially this year.

    Image source: Broadcom

Image source: Broadcom

These words Hock Tan (Hock Tan) directs the agency ReutersReferring to his speech during the Quarterly Review Conference. “We see interest, if not hype, in advancing applications and workloads in the generative AI segment.” – the CEO of Broadcom told those present. It is demand from developers of generative artificial intelligence systems that should drive such momentum in the networking segment.

The first quarter of the fiscal year ended in the company’s calendar at the end of January. Revenue for the period rose 16% to $8.92 billion, of which $7.1 billion came from chip shipments, where revenue increased 21% year over year. The remaining $1.8 billion, up 1 percent, came from infrastructure software. In the current quarter, the company will post $8.7 billion in revenue versus the $8.6 billion expected, according to Broadcom management. Although revenue growth will slow in the second half of the fiscal year, it will still allowing the corresponding quarterly results to come in higher than a year ago, according to Broadcom.

The company is now fully occupied with orders for the supply of chips until the end of the fiscal year. Although some customers have requested a delay in shipping orders, Broadcom’s financial position will not be greatly affected. This quarter could see a decline in sales of wireless network components as they are mainly used by a large North American customer, which assumes that Apple will not launch any new products with these types of components in the spring. In the long term, the Broadcom chief said the annual revenue rate will return to no more than 5% levels.

About the author

Johnson Smith

Johnson Smith is interested in Home Theater & Audio, Smart Tech, Google News & Products, How To, Apple News & Products, Cell Phones, Automotive Technology.

Add Comment

Click here to post a comment