Broadcom’s Future Looks Bright Despite NVIDIA CEO Jensen Huang’s Claims! Here’s What We Think!

Broadcom’s stock surged following its impressive fiscal first-quarter earnings, signaling resilience in the artificial intelligence trade despite recent market volatility. The company reported revenue of $14.92 billion, surpassing Wall Street’s expectation of $14.62 billion, while adjusted earnings of $1.60 per share exceeded analysts’ estimates of $1.51. Additionally, Broadcom projected $14.9 billion in revenue for the current quarter, above the consensus estimate of $14.71 billion. CEO Hock Tan attributed this strong performance to robust demand for AI semiconductor solutions and infrastructure software. The AI segment is expected to contribute $4.4 billion in Q2 revenue, driven by hyperscale partners investing heavily in AI XPUs and connectivity solutions.