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Broadcom (NASDAQ:AVGO) reported its Q1 results, with EPS of $10.33 coming in better than the consensus estimate of $10.18. Revenue grew 16% year-over-year to $8.92 billion, compared to the consensus estimate of $8.9B.
“Broadcom’s first quarter performance reflects continued strength in infrastructure demand across all our end markets,” said Hock Tan, President and CEO of Broadcom. “Looking ahead, we are confident our growth will be driven by sustained leadership in next generation technologies across all of our core markets, and strong partnerships with our customers.”
For Q2/2023, the company expects revenue of $8.7B, better than the consensus estimate of $8.58B.
Furthermore, the company declared a quarterly dividend of $4.60 per share, or $18.4 annualized, for an annual yield of 3.1%.
Bernstein analysts, who raised the price target on AVGO stock to $700 per share, highlighted the AI opportunity for Broadcom and added:
“AVGO’s overall execution remain stellar with more revenue stability, much better channel and customer management, and cash generation and margins that remain absolutely best in class, and the VMW deal will add even more value if they can get it closed.”
Goldman Sachs analysts also highlighted execution, which is especially impressive in an uncertain macro environment.
“Similar to past quarters, Broadcom realized strong yoy revenue growth in Networking (+20% yoy) and Server Storage Connectivity (+57% yoy) in FY1Q, driven by accelerated spending in AI and growth in next-gen solutions, adopted particularly by Enterprise customers,” they wrote in a note.
