Hock E. Tan
President and Chief Executive Officer at Broadcom
Thank you, Ji, and thank you, everyone, for joining us today.
Well, this has been a transformative year for Broadcom. Our fiscal year 2024 consolidated revenue grew 44% year-over-year to a record $51.6 billion. Now, excluding VMware, our revenue grew over 9% organically. So, fiscal '24 operating profit, excluding transition costs, grew 42% year-over-year and we returned a record $22 billion in cash to our shareholders, up 45% year-on-year, through dividends, buybacks and eliminations.
There were two significant drivers of this transformation this year. First, we closed the acquisition of VMware in the early weeks of fiscal '24 and have focused VMware on its technology leadership in data center virtualization. The integration of VMware is largely complete, revenue is on a growth trajectory and operating margin reached 70% exiting 2024. We are well on the path to delivering incremental adjusted EBITDA at a level that significantly exceeds the $8.5 billion we communicated when we announced the deal. We're planning to achieve this much earlier than our initial target of three years. The second driver in 2024 was AI. Our AI revenue, which came from strength in custom AI accelerators, or XPUs, and networking, grew 220% from $3.8 billion in fiscal '23 to $12.2 billion in fiscal '24 and represented 41% of our Semiconductor revenue. This drove Semiconductor revenue up to a record $30.1 billion during the year.
Okay. Now, let's move on to the fourth quarter and give you more color. Consolidated net revenue of $14.1 billion was up 51% year-on-year. Excluding VMware, organic growth was 11% and operating profit of $8.8 billion was up 53% year-on-year. For the details on Infrastructure Software in Q4. This Infrastructure Software segment revenue was $5.8 billion, up 196% year-on-year, flat sequentially even as multiple deals slip over into Q1. In VMware, we booked 21 million total CPU cores [Phonetic] in the quarter versus 19 million a quarter ago. Of these, about 70% represent VMware Cloud Foundation, or VCF, the full software stack virtualizing the entire data center. And this translated into annualized booking value, or ABV as we call it, of $2.7 billion for VMware in Q4, up from $2.5 billion in Q3.
Since closing the acquisition just over a year ago, we signed-up over 4,500 of our largest 10,000 customers for VCF. VCF enable customers to deploy private cloud environments on-prem as an alternative to running their applications in the public cloud. And in doing all this, we continue to drive down spending in VMware. We brought spending down to $1.2 billion in Q4, down from $1.3 billion in Q3. By reference, VMware spending was averaging over $2.4 billion per quarter prior to the acquisition with operating margin less than 30%.
Moving on to Q1 outlook for Infrastructure Software. We expect Q1 revenue to grow to $6.5 billion, up 11% sequentially and 41% up year-on-year. For VMware, ABV is expected to exceed $3 billion compared to $2.7 billion in the preceding quarter.
Turning to Semiconductors. Let me give you more details by end markets. Networking, Q4 revenue of $4.5 billion grew 45% year-on-year. AI networking revenue, which represented 76% of networking, grew 158% year-on-year. This was driven by a doubling of our AI XPU shipments to our three hyperscale customers and four times growth in AI connectivity revenue, driven by our Tomahawk and Jericho shipments globally. In Q1, we expect the momentum in AI connectivity to be as strong as more hyperscalers deploy Jericho3-AI in their fabrics. Our next-generation XPUs are in 3-nanometers and will be the first of its coming to market in that process node. We are on-track for volume shipment at our hyperscale customers in the second-half of fiscal '25.
Turning on to server storage. From its bottom six months ago, Q4 server storage connectivity revenue has recovered some 20% to $992 million. And in Q4, we expect service storage revenue to continue to grow. Turning to wireless. As we expected, seasonal launch by our North American customer drove Q4 wireless revenue to $2.2 billion, up 30% sequentially. This was up 7% year-on-year because of higher [Phonetic] content. We continue to be very engaged with this customer in multiyear roadmaps across various technologies we have leadership in, including RF, Wi-Fi, Bluetooth, sensing and touch. In Q1, reflecting seasonality, we expect wireless to be down sequentially, but still be flat year-on-year.
In Q4, broadband reached bottom at $465 million, down 51% year-on-year. We have seen significant orders across multiple service providers during this quarter. And reflecting this trend, we now expect broadband to show recovery beginning in Q1. Finally, on to industrial, which only represents 1% of the total revenues, measured on resales, Q4 industrial resales of $173 million declined 27% year-on-year. We only expect a recovery in the second-half 2025.
Before I sum-up and provide you Q1 fiscal '25 guidance, let me outline a longer-term perspective on how we see our Semiconductor business evolving over the next three years. On the broad portfolio of non-AI semiconductors with its multiple end-markets, we saw a cyclical bottom in fiscal '24 at $17.8 billion. We expect a recovery from this level at the industry's historical growth rate of mid-single-digits. In sharp contrast, we see our opportunity over the next three years in AI as massive. Specific hyperscalers have begun their respective journeys to develop their own custom AI accelerators, or XPUs, as well as network these XPUs with open and scalable Ethernet connectivity. For each of them, this represents a multi-year, not a quarter-to-quarter, journey.
As you know, we currently have three hyperscale customers who have developed their own multi-generational AI XPU roadmap to be deployed at varying rates over the next three years. In 2027, we believe each of them plans to deploy 1 million XPU clusters across a single fabric. We expect this to represent an AI revenue serviceable addressable market, or SAM, for XPUs and network in the range of $60 billion to $90 billion in fiscal 2027 alone. We are very well-positioned to achieve a leading market share in this opportunity and expect this will drive a strong ramp from our 2024 AI revenue base of $12.2 billion. Keep in mind though, this will not be a linear ramp, will show quarterly variability. To compound this, we have been selected by two additional hyperscalers and are in advanced development for their own next-generation AI XPUs. We have line-of-sight to develop these prospects into revenue-generating customers before 2027 and could therefore expand this SAM significantly.
So, the reality going forward for this Company is that the AI semiconductor business will rapidly outgrow the non-AI semiconductor business. Recognizing this, we will now shift to guiding our Semiconductor business by AI and non-AI revenue segments.
So, summarizing Q4, Semiconductor revenue of $8.2 billion grew 12% year-on-year and 13% sequentially. Q4 AI revenue grew a strong 150% year-on-year to $3.7 billion. Non-AI semiconductor revenue declined by 23% year-on-year to $4.5 billion, but still a 10% recovery from the bottom of six months ago.
Now, moving on to our outlook for Q1. We expect Semiconductor revenue to grow approximately 10% year-on-year to $8.1 billion. AI demand remains strong and we expect AI revenue to grow 65% year-on-year to $3.8 billion. We expect non-AI semiconductor revenue to be down about mid-teens percent year-on-year. And so, in total, summing this all up, we're guiding consolidated Q1 revenue to be approximately $14.6 billion, up 22% year-on-year. And we expect this will drive Q1 adjusted EBITDA to approximately 66% of revenue.
With that, let me turn this call over to Kirsten.
