Analysts Fire Off Top Questions as Broadcom Posts Q1 Beat
Broadcom topped Q1 expectations with revenue of $22.19B and adjusted EPS of $2.44, driven by AI semiconductors (AI revenue $10.8B, up 143% YoY). Gross margin slipped about 32 basis points as AI-chip mix grew, while operating margin was 48.6%. The company guided Q2 revenue to about $29.4B. In the call, top analysts pressed on AI backlog, the Google agreement, margin dynamics, wafer/HBM supply, and 2027 gigawatt targets, with CEO Hock Tan and CFO Kirsten Spears providing clarifications. Shares fell as investors digest the mix shift and margin outlook, alongside VMware software adoption and capacity considerations.