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Today at a glance:
📈 Broadcom: $1 Trillion Club
🛒 Costco: Consumer Shifts
🌱 MongoDB: Leadership Transition
🔷 Rubrik: Surpassing $1 Billion ARR
🎮 GameStop: Cash Rich But Revenue Poor
🏥 HealthEquity: Asset Growth Acceleration
🧠 C3 AI: Microsoft Alliance
1. 📈 Broadcom: $1 Trillion Club
Broadcom’s revenue rose 51% Y/Y to $14.1 billion, in line with expectations, with an adjusted Earnings Per Share (EPS) of $1.42 ($0.03 beat). Semiconductor solutions revenue grew 12% Y/Y to $8.2 billion, while infrastructure software tripled to $5.8 billion, driven by the VMware acquisition completed in November 2023.
FY24 revenue grew 44% Y/Y to $51.6 billion, including $12.2 billion in AI-related revenue, surging 220%. Management guided Q1 FY25 revenue to grow 22% Y/Y to $14.6 billion ($0.5 billion beat), fueled by robust demand for AI XPUs and Ethernet networking.
CEO Hock Tan highlighted Broadcom’s massive opportunity in AI, forecasting an AI semiconductor market of $60–$90 billion by FY27. While non-AI semiconductor revenue faces headwinds, AI revenue is set to rise 65% Y/Y to $3.8 billion in Q1 FY25. VMware’s integration has been a standout success, achieving an impressive 70% operating margin in the software segment.
With a leadership position in AI and strategic partnerships, Broadcom is well-positioned for sustained growth, even amid challenges in non-AI markets. Investors also welcomed an 11% increase in the quarterly dividend. After the report, the stock surged over 20%, propelling Broadcom above a $1 trillion market cap, making it the 10th largest company globally.