04:53 PM EST, 03/07/2024 (MT Newswires) -- Broadcom ( AVGO ) late Thursday reported stronger-than-expected fiscal first-quarter results as the chipmaker benefited from its VMware acquisition and artificial intelligence demand.

Adjusted earnings rose to $10.99 a share during the quarter through Feb. 4 from $10.33 a year earlier, coming in ahead of the Capital IQ-polled consensus indicating $10.42. Revenue advanced 34% to $11.96 billion, above Wall Street's $11.72 billion view.

Revenue in the semiconductor solutions segment increased 4% year over year to $7.39 billion, and sales in the infrastructure software division surged 153% to $4.57 billion. Broadcom ( AVGO ) completed its acquisition of VMware in November.

"Our acquisition of VMware is accelerating revenue growth in our infrastructure software segment, as customers deploy VMware Cloud Foundation," Broadcom ( AVGO ) Chief Executive Hock Tan said in a statement. "Strong demand for our networking products in AI data centers, as well as custom AI accelerators from hyperscalers, are driving growth in our semiconductor segment."

For fiscal 2024, Broadcom ( AVGO ) continues to anticipate consolidated revenue advancing 40% year on year to $50 billion. The Street is looking for $50.01 billion.

The company reiterated full-year expectations for adjusted earnings before interest, taxes, depreciation, and amortization at about 60% of projected revenue, compared with a 65% margin reported for 2023.

The stock was down 3.1% in after-hours trade.

"We have started to pay down debt, beginning with $3 billion to date in 2024, and expect to continue to pay down debt in fiscal year 2024," Chief Financial Officer Kirsten Spears said.

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