Chip giant Broadcom delivered blockbuster Q1 results, with AI business as the main growth engine sending shares up 4% after hours.

For the quarter ended Feb 1, revenue jumped 29% to $19.3 billion, an all-time high. AI revenue hit $8.4 billion, up a stunning 106% year over year, driven by strong demand for custom AI accelerators and networking solutions.

Adjusted EPS came in at $2.05, beating estimates of $2.03. EBITDA reached $13.1 billion, up 30% and also a record.

The company generated $8.26 billion in operating cash flow and $8.01 billion in free cash flow. Broadcom announced a $0.65 per share dividend and a new $10 billion share buyback program.

Q2 outlook is even stronger, with revenue projected at $22 billion (up 47%) and AI chip revenue targeting $10.7 billion.

CEO Hock Tan declared that AI winners will need to invest heavily in Broadcom's custom chips.

ICgoodFind : In the AI gold rush, Broadcom is selling shovels. 106% AI growth proves custom chip demand has no ceiling.