Broadcom more than tripled its AI semiconductor revenue and investors responded by selling the stock. The chipmaker reported $16.7 billion of AI revenue, up 221% from a year earlier and 54% sequentially.
Broadcom shares have gained just 6% so far this year, lagging behind the broader chip sector, which has risen 60%. The company's outlook offered minimal upside relative to expectations.
Broadcom Inc (NASDAQ:AVGO, XETRA:1YD) shares fell more than 6% after the company's fiscal fourth-quarter revenue guidance fell short of Wall Street expectations, overshadowing a third-quarter earnings beat driven by surging demand for its custom AI chips. The company guided to fourth-quarter revenue of approximately $34.8 billion, below the $35.03 billion analysts had projected, sending shares ...
The semiconductor and software company reported a quarterly profit of $13.09 billion, up from $4.14 billion a year earlier.
Broadcom beat estimates for its fiscal third quarter and with its guidance for the current period. But Broadcom stock fell.
Broadcom gave a disappointing revenue forecast for the current quarter. Results for the fiscal third quarter topped analysts' estimates.
Broadcom forecast quarterly revenue below Wall Street estimates on Wednesday, signaling intense competition could hamper gains from its custom processors.