In its financial report for the third quarter of fiscal 2024, Broadcom demonstrated strong performance in AI semiconductor solutions and VMware integration. According to the financial report, Broadcom achieved revenue of $13.072 billion in the quarter, a year-on-year increase of 47%. This significant growth was driven by the company's leadership in AI and the successful acquisition of VMware. Although Broadcom reported a net loss of $1,875 million under GAAP accounting standards, primarily due to the impact of one-time tax provisions, Broadcom achieved net income of $6,120 million on a non-GAAP basis.
In the semiconductor solutions business, Broadcom achieved revenue of $7.272 billion in the third quarter, up 5% year-over-year, reflecting its solid growth in Ethernet networking and AI data center custom accelerators. The infrastructure software segment's revenue surged 200% year-over-year to $5.798 billion, driven by the integration of VMware, which increased the division's share of the company's total revenue to 44%.
Broadcom CEO Fuyang Chen highly recognized the company's continued strength in AI semiconductor solutions and VMware integration, and expects revenue from AI to reach $12 billion in fiscal 2024. Kirsten Spears, chief financial officer, pointed out that Broadcom's consolidated revenue in the third quarter increased by 47% year-on-year to $13.1 billion if VMware's contribution is included. Excluding VMware, revenue grew 4% year-over-year.
Figure: Highlights of Broadcom's 2024Q3 financial report
Looking ahead, Broadcom expects to achieve revenue of approximately $14 billion in the fourth quarter ending November 3, 2024, up approximately 51% year-over-year. This expectation shows the company's confidence in future growth, although the market has some uncertainty about the fourth-quarter revenue outlook, which has led to volatility in the stock price in after-hours trading.
Overall, Broadcom's Q3 revenue results underscore its strong competitiveness and market position in AI and cloud computing. With the acceleration of digital transformation and the continuous advancement of AI technology, Broadcom is expected to continue to maintain its leading position in these areas. At the same time, Broadcom's growth trend also reflects the AI-driven development momentum of the entire semiconductor industry and the strong market demand for high-performance, high-density, and energy-saving chip solutions.
With technological progress and market expansion, solid-state batteries are expected to become one of the main battery technologies in the future, bringing new development opportunities to the new energy vehicle market. Broadcom's strategic moves, along with similar initiatives by others in the industry, show that solid-state battery technology is maturing and is expected to have far-reaching implications for automotive manufacturing, charging infrastructure, and related policies.
