LONDON (ShareCast) - (Sharecast News) - Shares in Broadcom were up nearly 10% in pre-market trade on Friday after the American semiconductor giant unveiled record results for its fiscal third quarter on the back of impressive AI revenue growth, and impressed with its outlook.
The company, which designs, develops and supplies semiconductor and infrastructure software solutions, reported revenues of $15.95bn for the three months to 3 August, up 22% over last year and ahead of the $15.83bn consensus estimate.

Sales were boosted by continued strength in custom AI accelerators, networking and its VMware division, while AI revenues jumped 63% to $5.2bn.

The company also reported a $6bn swing into profitability, with a quarterly net income of $4.14bn, compared with a $1.88bn loss the year before. Adjusted earnings per share of $1.69 surpassed the $1.66 expected by the market.

For the fourth quarter, Broadcom guided to revenues of $17.4bn and adjusted EBITDA equal to 67% of revenue.

"We expect growth in AI semiconductor revenue to accelerate to $6.2 billion in Q4, delivering eleven consecutive quarters of growth, as our customers continue to strongly invest," said Hock Tan, president and chief executive.

Broadcom stock futures were up 9.3% at $334.60 by 0630 in New York, set to hit another record high after having already jumped by a third so far this year.

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