TLDR
- Broadcom AI revenue surged 63% to $5.2B with custom chips for Meta and Alphabet data centers
- Microsoft Azure hit $75B annual revenue, up 34%, as cloud AI services gain market share
- Nvidia posted record $46.7B quarterly revenue driven by new Blackwell GPU systems
- ASML maintains chip manufacturing monopoly with €33B order backlog for AI processors
- AI infrastructure spending projected to reach $2-4 trillion globally by 2030
The artificial intelligence boom is driving unprecedented revenue growth for technology companies building AI infrastructure. Four market leaders posted exceptional quarterly results as global AI spending accelerates toward trillions of dollars.
Market forecasts show AI infrastructure investments reaching $1.7 trillion by 2030, with cloud computing revenue alone hitting $2 trillion. These projections are materializing as companies rush to build AI capabilities across industries.
Broadcom and Microsoft Lead AI Revenue Surge
Broadcom delivered standout third-quarter results with total revenue jumping 22% to $15.9 billion. The company’s AI revenue exploded 63% higher to $5.2 billion, driven by custom application-specific integrated circuits for major clients including Meta and Alphabet.
The semiconductor giant projects AI sales reaching $6.2 billion next quarter and potentially $90 billion annually by 2027. Software revenue from its VMware acquisition grew 17% to $6.7 billion, now representing 43% of total revenue. Non-GAAP earnings increased 36% to $1.69 per share.
Microsoft reported fourth-quarter revenue growth of 18% to $76 billion as AI integration across its software suite drives adoption. Azure cloud computing services surpassed $75 billion in annual revenue, posting 34% growth as the company captures market share from Amazon.
CEO Satya Nadella confirmed Microsoft continues gaining AI infrastructure market share each quarter. The company holds 20% of the cloud computing market after integrating OpenAI’s ChatGPT technology into Microsoft 365, GitHub, and other services. Non-GAAP earnings rose 24% to $3.65 per share.
Nvidia and ASML Dominate Chip Production
Nvidia posted record fiscal second-quarter results with revenue climbing 56% to $46.7 billion and net income surging 59% to $26.4 billion. The company’s new Blackwell Ultra GB300 systems generated tens of billions in revenue within months of launch.
The GB300 systems feature NVLink 72 technology enabling server racks to function as single computers while producing 10 times the output of previous systems using identical energy. Nvidia manufactures 1,000 GB300 racks weekly and plans to increase production in the third quarter.
The company accelerated its hardware release cycle from every two years to annual updates. Its CUDA software platform creates customer switching costs since it only works with Nvidia hardware for AI training and deployment.
ASML reported second-quarter sales of €7.7 billion with €2.3 billion net income. The Dutch company maintains a monopoly on extreme ultraviolet lithography machines required for advanced AI chip manufacturing. Order backlog reached €33 billion despite canceling €1.4 billion in Chinese orders.
ASML expects customers to add 30% more EUV manufacturing capacity in 2025 compared to 2024. The company’s new NXE:3800E system delivers higher productivity while its high-NA EUV technology prints smaller chip features in fewer steps.
Full market availability of Nvidia’s GB300 systems is expected before calendar 2025 ends, with cloud providers easily transitioning from previous GB200 systems due to shared architecture and specifications.
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