Broadcom Inc

Broadcom posted a strong fiscal second quarter, with revenue climbing 20.2% year-over-year to $15.00 billion and non-GAAP diluted EPS of $1.58 edging past the $1.57 consensus estimate by 0.59%, as the chip and software giant continued to benefit from an AI-driven spending cycle that shows little sign of slowing. The headline driver was AI semiconductor revenue, which surged 46% year-over-year to $4.40 billion, fueled by deepening demand from hyperscale partners for AI networking solutions, a trend reflected broadly across the semiconductor industry as AI data center construction accelerates. The semiconductor solutions segment contributed $8.41 billion, while VMware's infrastructure software business added $6.60 billion, up 25% year-over-year, underscoring the ongoing monetization of that landmark acquisition. Free cash flow reached a record $6.41 billion, up 44% year-over-year, as adjusted EBITDA expanded to $10.00 billion, representing 67% of revenue. Looking ahead, management guided Q3 revenue to approximately $15.80 billion, a 21% year-over-year increase, with AI semiconductor revenue expected to accelerate further to $5.10 billion.