This year, Broadcom's AI revenue more than tripled, resulting in a profit beat.

• Although revenue was slightly lower than expected, Broadcom reported better-than-expected fourth-quarter earnings on Thursday.
• Broadcom is seeing soaring demand from the boom in generative AI infrastructure.
• The company reported a 220% increase in revenue from artificial intelligence to $12.2 billion.

On Thursday, the chipmaker reported better-than-expected fourth-quarter earnings and said that its artificial intelligence revenue for the year more than tripled. As a result, its stock ticked higher in extended trading.

LSEG consensus estimates for the quarter ending Nov. 3 were lower than Broadcom's performance.

• Earnings per share: $1.42, adjusted vs. $1.38 expected
• Revenue: $14.05 billion vs. $14.09 billion expected

Broadcom anticipates first-quarter revenue of approximately $14.6 billion, slightly above the $14.57 billion average analyst forecast. The company's fourth-quarter revenue increased by 51% year-over-year, from $9.3 billion.

In the fourth quarter, net income was $4.32 billion, which amounts to 90 cents per share, representing a 23% increase from the $3.52 billion, or 83 cents per share, recorded in the same quarter the previous year.

The semiconductor solutions group, which encompasses the company's artificial intelligence chips, experienced a 12% revenue increase to $8.23 billion from $8.03 billion in the previous year.

The surge in demand for generative AI infrastructure is driving significant revenue growth for Broadcom. For the year, the company reported a 220% increase in AI revenue, totaling $12.2 billion. This growth can be attributed in part to the company's ethernet networking products, which are used to connect thousands of AI chips.

Nearly tripling from last year's revenue of $1.96 billion, Broadcom's infrastructure software division generated $5.82 billion in revenue for the quarter. This increase was due in part to the $69 billion acquisition of VMware, which was completed after the year-ago quarter.

Broadcom announced that it would raise its quarterly dividend by 11% to 59 cents per share in fiscal 2025.