News built for finance pros
CFO Brew helps finance pros navigate their roles with insights into risk management, compliance, and strategy through our newsletter, virtual events, and digital guides.
Nvidia this. Nvidia that. We’ll go full Jan Brady: Nvidia, Nvidia, Nvidia!
Chipmakers like Nvidia have been driving the AI boom, and it’s easy to forget that there are other chipmakers that aren’t helmed by Jensen Huang and seemingly printing money. But don’t feel too bad for the metaphorical middle children of the tech world: Broadcom, which reported its Q2 earnings on Wednesday, seems to be doing juuuuust fine.
The Palo Alto-based chipmaker topped revenue estimates, bringing in $12.5 billion, a beat from the $12 billion analysts expected. That marked a 43% YoY jump.
“Broadcom’s second quarter results were once again driven by AI demand and VMware,” CEO Hock Tan said in an earnings statement. “Revenue from our AI products was a record $3.1 billion during the quarter.”
The company acquired software company VMware for $69 billion last year, and the move is paying off; Tan noted in Broadcom’s earnings call that the integration “is going very well.”
“In Q2, infrastructure software segment revenue of $5.3 billion was up 175% year on year and included $2.7 billion in revenue contribution from VMware, up from $2.1 billion in the prior quarter,” he added.
And while Broadcom’s overall revenue was up the aforementioned 43%, if you remove VMware sales, Tan noted that “consolidated revenue was up 12% year on year.” In short: The bet is paying off.
On the back of the strong Q2 report, Broadcom raised its fiscal 2024 revenue guidance to $51 billion. In all, it’s a pretty picture. And in a sense, it needs to be. Just last week, Tan topped an analysis from the Associated Press and Equilar regarding CEO pay: His nearly $162 million pay package in 2023 clinched him the top spot.
His compensation was fueled in large part by stock awards, and the company’s surging share price swelled his salary as well. But he made a staggering 510 times more than a median-salaried Broadcom employee. We don’t always have to feel bad for the middle child.