In the first quarter of fiscal 2025, AI semiconductor revenue saw a significant 77% year-on-year increase, leading to a nearly 9% pre-market rise for Broadcom (AVGO.US).

On Friday, Broadcom (AVGO.US) rose nearly 9% before the market opened, to $195.41. The company's financial report showed that its revenue in the first quarter of fiscal 2025 (ending in February 2025) was US$14.92bn, up 25% YoY, topping the US$14.61bn expectation; its non-GAAP net profit was about US$7.823bn, up 49% YoY. Both of its businesses saw a rapid growth in revenue. In particular, its AI semiconductor revenue was particularly outstanding, reaching US$4.1bn, up 77% YoY; its infrastructure software department (mainly VMware) revenue also grew 47% YoY to US$6.7bn.

Hock Tan, CEO of Broadcom, noted that spending on artificial intelligence was a key driver of the company's first-quarter performance. In addition, the company expects its revenue in the second quarter to be about US$14.9bn, up 19% YoY, topping analysts' expectations of US$14.76bn. It also expects its AI semiconductor revenue to further grow to US$4.4bn in the second quarter, driven by continued investment in AI XPU and data center interconnection by large tech companies.