The following is a summary of the Broadcom Inc. (AVGO) Q4 2024 Earnings Call Transcript:

Financial Performance:

• Broadcom recorded a consolidated revenue of $51.6 billion in fiscal year 2024, marking a 44% increase year-over-year.

• Excluding VMware, the organic revenue growth was over 9%.

• Operating profit excluding transition costs grew by 42% year-over-year.

• Q4 net revenue reached $14.1 billion, a 51% increase year-on-year, with operating profit at $8.8 billion, up 53%.

• Q4 gross margins stood at 76.9%, a significant improvement from the previous year.

Business Progress:

• Broadcom closed the acquisition of VMware, integrating its technology in data center virtualization.

• AI revenue significantly contributed to growth, with a 220% increase from the previous fiscal year, representing 41% of semiconductor revenue.

• The company is focusing on its AI semiconductor segment, differentiating between AI and non-AI revenues going forward.

• Plans are underway for a considerable boost in infrastructure software in Q1, with expected growth leading to $6.5 billion in revenue.

Opportunities:

• AI technologies and associated products are seeing massive growth, with AI revenue predicted to expand significantly within the broad semiconductor business.

• The company targets a $60 to $90 billion AI revenue Serviceable Addressable Market (SAM) by fiscal 2027, primarily driven by hyperscaler custom AI accelerators and network connectivity.

Risks:

• AI revenue growth is subject to quarterly variability due to reliance on large-scale deployments by a few major hyperscaler customers.

More details: Broadcom IR

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