Broadcom sales rise as AI developers expand products and agents

Broadcom reported Q1 revenue of $19.31 billion, with AI revenue more than doubling to $8.4 billion, and its board authorized a $10 billion share buyback.

Broadcom reported higher first-quarter revenue and stronger AI-related sales as a wider set of customers build more AI products and agents. Chief Executive Hock Tan said AI revenue more than doubled to $8.4 billion and that demand is coming from both hyperscalers and other companies seeking to productize LLMs and deploy AI services. The company posted a quarterly profit of $7.35 billion and revenue rose 29% year over year to $19.31 billion. The board authorized a new share buyback program of up to $10 billion. Key facts: - AI revenue in the quarter was reported at $8.4 billion, more than double the prior period. - Total revenue rose 29% to $19.31 billion and GAAP profit was $7.35 billion for the quarter. - Adjusted EPS was reported at $2.05, versus a FactSet consensus of $2.03. - The board approved up to $10 billion in share repurchases. - Broadcom said OpenAI is expected to deploy first-generation XPUs in 2027 with over one gigawatt of compute, making OpenAI a sixth major hyperscaler customer. - Management said AI networking is forecast to grow to about 40% of total AI revenue as Broadcom gains share. Summary: The company described expanding demand from both hyperscalers and non-hyperscaler customers who are building LLMs, AI agents and related platforms, which the company says helped drive gains this quarter. Broadcom provided guidance for the current quarter at about $22 billion in revenue and noted a 2027 deployment timeline for certain customer XPUs as part of upcoming demand expectations.