Broadcom Reports Record Q1 Revenue Driven by AI Chip Demand and VMware Upselling

The company achieved 25% year-over-year revenue growth, fueled by surging AI semiconductor sales and adoption of VMware Cloud Foundation by 70% of its largest customers.

Broadcom posted $14.92 billion in Q1 FY2025 revenue, a 25% increase from the previous year, with net income surging 315% to $5.5 billion.
AI semiconductor revenue grew 77% year-over-year to $4.1 billion, with demand from hyperscale customers driving the growth.
Infrastructure software revenue, which includes VMware, rose 47% to $6.7 billion, attributed to upselling customers to VMware Cloud Foundation subscriptions.
Approximately 70% of Broadcom's largest 10,000 customers adopted VMware's Cloud Foundation stack, contributing significantly to the software revenue jump.
Broadcom forecasts Q2 revenue of $14.90 billion, with AI semiconductor revenue expected to increase further to $4.4 billion.