Q1 2025 Broadcom Inc Earnings Call Transcript
Key Points
- Broadcom Inc (AVGO) reported a record total revenue of $19 billion for fiscal Q1 2025, up 25% year on year.
- AI revenue reached $4.1 billion, up 77% year on year, surpassing the guidance of $3.8 billion.
- The company is making significant R&D investments in AI, including the development of the industry's first 2-nanometer AI XPU.
- Infrastructure software revenue grew by 47% year on year, driven by the integration of VMware and the shift to subscription-based models.
- Broadcom Inc (AVGO) is expanding its customer base, with four additional hyperscalers engaged in developing custom AI accelerators.
- Non-AI semiconductor revenue was down 9% sequentially due to a seasonal decline in wireless.
- Enterprise networking remains flat as customers work through channel inventory.
- Industrial sales were down double digits in Q1 and are expected to decline further in Q2.
- Free cash flow as a percentage of revenue is impacted by cash interest expenses and cash taxes.
- Concerns about geopolitical tensions and potential regulatory impacts on AI diffusion rules could pose risks to future operations.
Welcome to the Broadcom Inc.'s first quarter fiscal year 2025 financial results conference.
At this time, for opening remarks and introductions, I would like to turn the call over to Ji Yoo, Head of Investor Relations of Broadcom Inc.
Thank you, Sherry, and good afternoon, everyone. Joining me on today's call are Hock Tan, President and CEO; Kirsten Spears, Chief Financial Officer; and Charlie Kawwas, President, Semiconductor Solutions Group.
Broadcom distributed a press release and financial tables after the market closed, describing our financial performance for the first quarter of fiscal year 2025. If you did not receive a copy, you may obtain the information from the investors section of Broadcom's website at broadcom.com.
This conference call is being webcast live and an audio replay of the call can be accessed for one year through the Investors section of Broadcom's website. During the prepared comments, Hock and Kirsten will be providing details of our first quarter fiscal year 2025
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