All this comes as the global market continues to look rosy for IT and cloud spending. Recently, Gartner forecasted that most major markets would see healthy growth in IT spending for 2024, including Europe, where it’s projected to be up 9% for the year, and India, which is projecting 11% growth.
Globally, IT spending is on track to jump 8% worldwide in 2024, the research firm said.
Broadcom forecasted a consolidated revenue of $50 billion for fiscal year 2024, with significant contributions from VMware and anticipated mid to high single-digit percent growth in semiconductor solutions revenue.
Revenue from wireless and server storage segments experienced downturns.
Like many other IT and semiconductor companies, Broadcom is seeing a bump in revenue attributable to AI, close to $1.5 billion in Q4 revenue, or a 15% increase over last year, and this is projected to grow.
“We expect revenue from generative AI to represent more than 25% of the semiconductor revenue, consistent with prior guidance, which more than offset the lack of growth from non-AI semiconductor revenue,” Tan said, pointing to Ethernet solutions and AI accelerators as significant growth areas for the company.
