Is Broadcom outperforming Nvidia, as suggested by their financial figures?
In a significant development, Broadcom Inc., a leading global technology company headquartered in San Jose, California, announced its Q3 results for the fiscal year 2025. The company, renowned for developing custom chips and manufacturing networking equipment, reported revenues of approximately $15.95 billion, marking a 22% increase compared to the same period last year.
The earnings season, during which major companies release their latest quarterly figures, is nearing its conclusion, and Broadcom's results have added a notable highlight. During regular trading, Broadcom's stock gained, and it is continuing to add more percentage points after hours.
Broadcom's stock has been on an upward trajectory this year, with a 30% rise, and the latest Q3 results seem to be further propelling its growth. In fact, the company's stock has doubled in the last 12 months, and it is now heading towards its yearly highs.
The company exceeded the market's expectations for both revenue and earnings per share in Q3. While the expected earnings per share were $1.65, Broadcom reported $1.69. The revenue, which was expected to be $15.83 billion, was actually $15.95 billion.
Broadcom's revenue in the AI Semiconductors segment for Q3 was $5.2 billion, exceeding expectations of $4.1 billion. This growth in the AI processor segment underscores Broadcom's strategic focus on emerging technologies.
Looking ahead, Broadcom has guided for a revenue of $17.4 billion in Q4. The company also expects a non-GAAP EBITDA of $11.65 billion in Q4, with an expected non-GAAP EBITDA margin of 67%.
Broadcom is a significant supplier of chips to cloud companies, and its strong performance is a testament to the growing demand for semiconductors in the cloud sector. Analysts expect stable revenue growth for the rest of this year and a slight acceleration in 2026 for Broadcom.
Broadcom's stock is moving away from the 50-day line at $290.03, suggesting continued investor confidence in the company's growth prospects. As the technology industry continues to evolve, Broadcom's strategic focus on emerging technologies and its strong financial performance position it well for future success.
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