These AI numbers are getting crazy
Earnings season continues unabated, offering fresh insights into artificial intelligence. This is particularly crucial as I prepare for the Goldman Sachs Communacopia tech conference, a gathering of industry giants. The past two weeks have been particularly tumultuous for AI investment. Broadcom's revenue jumped 86% year-over-year, with adjusted earnings per share soaring 96%, far surpassing analyst expectations.
The surge was driven by a surge in demand for custom AI chips and networking gear from hyperscalers such as Meta and Google, with AI semiconductor revenue tripling to $16.7 billion. Broadcom CEO Hock Tan forecasted $350 billion in AI semiconductors for the next two years to these high-profile customers. Dell and Nvidia also delivered optimistic earnings, with revenue growth expectations ranging from 70% to potentially over 100%.
Hewlett-Packard Enterprise reported a 34% year-over-year revenue increase, with adjusted earnings per share rising 30%. Despite positive news across the board, stocks in these companies saw profit-taking. I am set to attend the Goldman Sachs Communacopia conference and expect to gain valuable insights, particularly as we anticipate major IPOs from OpenAI and Anthropic.
Written by urgent.news from Yahoo Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
