Semiconductor company Broadcom Inc, known for its expertise in artificial intelligence (AI), is anticipated to release its third-quarter financial results after market close on Thursday. All eyes are on the company's AI business segments and the potential growth opportunities they present. Analysts and investors are particularly interested in the commentary on AI revenue.

According to data from Benzinga Pro, analysts are expecting Broadcom to report third-quarter revenue of $12.96 billion. This would mark a significant increase from the $8.88 billion reported in the same quarter last year. It is worth noting that Broadcom has consistently beaten analyst revenue estimates, achieving this feat for 16 out of the past 17 quarters.

Additionally, analysts project that Broadcom will report third-quarter earnings per share of $1.20, compared to $1.05 in the corresponding quarter last year. The company has impressively surpassed earnings estimates for 13 consecutive quarters.

The release of the third-quarter earnings report comes at a time when Broadcom's stock has already gained 42% year-to-date in 2024. This positive performance reflects investors' confidence in the company's prospects.

JPMorgan analyst Harlan Sur highlighted Broadcom as one of several companies well-positioned to benefit from the booming $150 billion AI silicon market. Sur emphasized that Broadcom's AI sector sets the company up for both short-term and long-term growth. Sur further explained that Broadcom's strong expertise, technology capabilities, and IP in AI ASIC (application-specific integrated circuit) business provide a competitive edge and increase customer loyalty.

Sur also highlighted Broadcom's leadership in Ethernet networking, which has powered seven out of the eight largest AI clusters globally. This technological advantage positions the company even stronger in the sector.

Cantor Fitzgerald analyst C.J. Muse also acknowledged Broadcom's potential in his recent report, advising investors to prioritize AI-focused semiconductor companies. Muse believes that the AI segment is thriving, while other areas remain in the cyclical slowdown.

Investors and analysts will be closely monitoring Broadcom's AI segment performance and any commentary provided in the earnings report. In a previous statement, Broadcom CEO Hock Tan highlighted the strong demand for AI products, which generated a record $3.1 billion in revenue during the second quarter. The reception and future revenue potential of Broadcom's non-AI business segments will also be key areas of focus.

Moreover, guidance from Broadcom's third-quarter results will be crucial. The company previously raised its full-year revenue guidance to $51 billion, surpassing its initial projection of $50 billion. Analysts and investors are expecting another positive guidance update after the strong performance in the third quarter.

Broadcom shares currently trade at $153.46, representing an impressive 41.39% increase compared to the previous year's trading range of $79.54 to $185.16.

In summary, Broadcom Inc's strong performance continues as it surpasses analyst estimates, driven by its AI business segments. With a promising outlook for the AI silicon market and its expertise in Ethernet networking, Broadcom is on track for further growth and success in the semiconductor industry.