This year, Broadcom predicts it will sell $12 billion in AI components and custom chips.

• Wall Street expectations for revenue and earnings were surpassed by Broadcom in their fiscal third-quarter results, which were reported on Thursday.
• The value of Broadcom stock has increased by 75% in the past year due to investors recognizing the company's production of essential components for artificial intelligence infrastructure.
• In a statement, Broadcom CEO Hock Tan stated that the company anticipates generating $12 billion in revenue from AI components and custom chips in the fiscal year 2024.

On Thursday, the company reported third-quarter financial results that exceeded revenue and earnings expectations of Wall Street.

Broadcom shares fell 5% in extended trading.

LSEG consensus estimates for the quarter that ended Aug. 4 were not met by the chipmaking conglomerate.

• Earnings per share: $1.24 adjusted vs. $1.20 expected
• Revenue: $13.07 billion vs. $12.97 billion expected

Broadcom expects to generate $14 billion in revenue during the current quarter, which is higher than the anticipated $1.36 per share on $14.04 billion.

In the most recent quarter, Broadcom reported a net loss of $1.88 billion, which amounts to 40 cents per share, in contrast to the net income of $6.12 billion, or $1.24 per share, in the previous quarter.

The company's net loss for the third quarter includes a one-time tax provision of $4.5 billion resulting from trading intellectual property rights between two company segments in the U.S. as part of supply chain management.

Broadcom's stock has increased by 75% in the past year due to investors recognizing the company's production of essential components for big data centers and AI infrastructure. Specifically, Broadcom collaborates with Google on the TPU chip, which Apple utilized for some of its AI capabilities.

In a statement, Broadcom CEO Hock Tan stated that the company anticipates generating $12 billion in revenue from AI components and custom chips in the fiscal year 2024.

Broadcom's third quarter results demonstrate the continued success of our AI semiconductor solutions and VMware, with semiconductor sales reaching $7.27 billion, up 5% year-over-year. Despite this, the infrastructure software segment, which includes the VMware acquisition, reported $5.8 billion in sales, still larger than the semiconductor segment.