By Tatiana Darie
03/06/2025
Bloomberg
More details from the Broadcom release show that its AI-related sales grew 77% year-over-year to $4.1 billion in 1Q, above expectations of 62%. It also guided for AI semiconductor revenue of $4.4b for 2Q, indicating that AI chip demand remains strong despite worries that disruptors out of China may cause a pullback in spending. Nvidia shares are now trading higher too, while Nasdaq-100 E-Minis pared some of their steep declines.
This shouldn’t come as a surprise though, given the hundreds of billions in AI investments announced this year so far. The key question is how long it will persist in face of rising competition.
Meanwhile, a big focus for investors remains the situation with Apple, which is expected to switch to an in-house chip that will replace this year some parts Broadcom currently provides. The Broadcom call at 5pm ET will likely offer more details.