Broadcom ($AVGO), a key chip supplier for major tech companies including Apple, reported its first-quarter earnings, revealing a complex picture of its current business landscape. While the company's revenue from AI-related chips saw a significant increase, with AI revenue quadrupling to $2.3 billion in Q1, its semiconductor business underperformed, missing revenue estimates. Despite this, Broadcom's overall Q1 revenue surpassed estimates, credited in part to the VMware deal and strong demand for AI data center products. However, the company's full-year revenue guidance was set slightly below expectations at $50 billion, compared to a $52 billion consensus, though this still represents a 40% year-on-year increase. Broadcom's CEO highlighted the company's substantial growth in AI revenue, which is expected to reach $10 billion in 2024. This growth in AI chip sales is seen as a counterbalance to the cyclical slowdown in other areas of its business. Analysts have adjusted their price targets for Broadcom following these mixed earnings results, reflecting the growing dichotomy in the tech sector's AI-driven growth versus traditional semiconductor challenges. The network solutions revenues exploded, but the semiconductors segment is growing much more slowly despite AI tailwinds. AI semi revenue is now expected to increase by 30% versus the previously expected 25%, with TR x-VMW at 11%, and VMW TR DD growth expected to continue Q/Q for the rest of the year. The full-year guide for TR is 40%, with an adjusted EBITD of 60%.