Broadcom Inc. announced its fourth quarter and fiscal year 2024 financial results on December 12, 2024, reporting a record fiscal year 2024 revenue of $51.6 billion, a 44% increase year-over-year. This growth was significantly driven by infrastructure software revenue reaching $21.5 billion and semiconductor revenue totaling $30.1 billion, up 7% year-over-year.
The company's AI revenue for fiscal year 2024 surged to $12.2 billion, marking a 220% increase year-over-year, primarily from its AI XPUs and Ethernet networking portfolio. For the fourth quarter, net revenue was $14.054 billion, a 51% increase year-over-year, with semiconductor solutions revenue at $8.230 billion and infrastructure software revenue at $5.824 billion, up 196% year-over-year.
Broadcom reported non-GAAP diluted earnings per share of $1.42 for the fourth quarter, exceeding analyst estimates of $1.38. The company also generated robust cash flow, with adjusted EBITDA reaching $31.9 billion for the fiscal year and free cash flow at $21.9 billion.
For the first quarter of fiscal year 2025, Broadcom provided guidance for consolidated revenue of approximately $14.6 billion, surpassing the average analyst estimate of $14.57 billion. This outlook includes an expected 65% year-over-year increase in AI semiconductor revenue to $3.8 billion and a 41% rise in infrastructure software revenue to $6.5 billion.
CEO Hock Tan highlighted the company's deep engagement in the AI market, stating that AI revenue is expected to drive $12 billion in annual sales for the current fiscal year. He also revealed that Broadcom is developing custom AI chips with three large cloud customers, identified by analysts as Meta, Alphabet, and TikTok parent ByteDance, and expects each to deploy 1 million AI chips in networked clusters by 2027.
The company projects a total market opportunity for its AI chips (XPUs) and AI networking solutions to be in the range of $60 billion to $90 billion by fiscal year 2027. In line with its strong financial performance, Broadcom's Board of Directors approved an 11% increase in the quarterly cash dividend to $0.59 per share for fiscal year 2025, payable on December 31, 2024.
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