Broadcom (AVGO) Q1 2025 Earnings: AI Growth Fuels Strong Performance

Surging AI demand and VMware integration drive record revenue and expanding software momentum

Broadcom delivered a record Q1, fueled by surging AI semiconductor demand and solid software momentum following the VMware acquisition. Revenue jumped 25% YoY to $14.9B, while adjusted EBITDA surged 41% to $10.1B, maintaining an impressive 68% margin.

AI Semiconductor Strength
Broadcom’s AI-related revenue hit $4.1B, up 77% YoY, as hyperscalers ramped spending on custom AI accelerators and networking solutions. The company expanded its AI chip customer base, shipping its latest XPUs to three hyperscalers and securing two more for future deployments. However, non-AI semiconductor segments remained sluggish, with weakness in wireless, storage, and industrial markets, though broadband showed early signs of stabilization.