(Alliance News) - Broadcom Inc on Thursday predicted further sales growth driven by demand for artificial intelligence goods after reporting top-end second quarter revenue.

The Palo Alto, California-based semiconductor company reported net income more than doubled to USD4.97 billion in the three months to May 4, the financial second quarter, from USD2.12 billion the year prior.

Adjusted earnings before interest, tax, depreciation and amortisation rose 67% to USD10.00 billion from USD7.43 billion.

GAAP diluted earnings per share improved to USD1.03 from USD0.44 while non-GAAP diluted EPS advanced to USD1.58 from USD1.10.

Net revenue rose 20% to USD15.00 billion from USD12.49 billion, ahead of Visible Alpha guidance of USD14.97 billion.

Semiconductor solutions revenue grew 17% to USD8.41 billion and Infrastructure software revenue by 25% to USD6.60 billion.

Broadcom shares were 0.7% lower in after-hours trading. They had earlier closed down 0.4% at USD259.93 each in New York on Thursday.

"Broadcom achieved record second quarter revenue on continued momentum in AI semiconductor solutions and VMware. [Second quarter] AI revenue grew 46% year-over-year to over USD4.4 billion driven by robust demand for AI networking," said Hock Tan, president and chief executive.

"We expect growth in AI semiconductor revenue to accelerate to USD5.1 billion in Q3, delivering ten consecutive quarters of growth, as our hyperscale partners continue to invest," he added.

Free cash flow totalled USD6.41 billion in the quarter compared with USD4.45 billion a year prior.

Looking ahead, Broadcom forecast revenue of about USD15.8 billion in the financial third quarter, compared with estimates of USD15.69 billion, according Visible Alpha.

It expects third quarter adjusted Ebitda of at least 66% of projected revenue.

By Jeremy Cutler, Alliance News reporter

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