Broadcom, TSMC report strong revenue growth

Yahoo Finance Live anchors discuss quarterly earnings for Broadcom and revenue reports from TSMC.

Video transcript

[AUDIO LOGO]

JULIE HYMAN: Let's get to thing number two. And that has to do with the chips this morning. Broadcom shares are rising about 3%. The company came out with a beat on earnings in its latest quarter. Fiscal year 2022 revenue growing 21% year-over-year to a record $33.2 billion.

We also heard from Taiwan Semiconductor. That company reported its net revenue for November, which rose year-over-year about 50.2% and 5.9% from October. So that also something that people are obviously focusing a lot on. Taiwan Semi has been in the news a lot lately, among other reasons, because it's building that factory out in Arizona.

BRIAN SOZZI: Every number they seem to report is just like this explosive sales growth number. It just happens every quarter. But maybe I've told you this before, Julie, look, I understand the importance of Broadcom, AVGO the ticker symbol. Just the company bores me a little bit. But I understand their importance in the overall supply chain and what they do.

And it was interesting to hear this company talk about continued overall strength in infrastructure spending. What a different change in tone compared to what we heard a couple of months ago from companies that play in the PC chip space, like an Intel. They're still saying, Broadcom, "Infrastructure spending remains strong." That is from CEO Hock Tan on that earnings call last night.

And he sees that demand being sustained at least into the first part of next year. That optimism, I think, is a large part why you're seeing the stock up here in the premarket. And, of course, a $0.20 earnings beat is nice, too.

JULIE HYMAN: You know and the company's wireless unit's biggest client is Apple. So it's important in that supply chain as well. And that wireless unit revenue is gonna grow by a low single-digit percentage in the first quarter.

Now, one thing that Broadcom did not do is give a forecast for next year. And analysts are flagging that as one area of caution at least. It doesn't seem like people are alarmed by it. But just that Broadcom saying that it doesn't really have good visibility into what's gonna happen for-- sort of acknowledging the reality, I guess, out there that it's still a very volatile environment.

BRIAN SOZZI: Yeah, I like what Hock Tan said on the call. Again, the CEO of Broadcom saying, I really don't know how 2023 is going to go. You have to-- you know. I appreciate that honesty.

JULIE HYMAN: Same Hock Tan. Same.

BRIAN SOZZI: Yeah, I really appreciate the honesty. If you don't know, just don't put out a forecast.

JULIE HYMAN: Yeah, although sometimes companies get a little bit hammered for doing that sort of thing. But in this case, it's sort of understandable.