Broadcom’s stock drops 5% as weak guidance overshadows earnings beat
Broadcom still topped quarterly earnings estimates, but its weaker fourth-quarter revenue outlook pointed to tougher competition for AI chip sales.
- On Sept 2, Broadcom shares dropped 5% in extended trading after the chipmaker issued fourth-quarter revenue guidance below Wall Street expectations.
- Broadcom CEO Hock Tan touted the custom Jalapeno chip developed with OpenAI, while Apple increased spending with the company, pushing market cap to about $1.8 trillion.
- The company reported adjusted earnings per share of $3.32 against $3.24 expected, while revenue of $29.59 billion beat the $29.36 billion anticipated by Wall Street analysts.
- For the fourth quarter, Broadcom expects revenue of $34.8 billion, missing the LSEG analyst consensus of $35.03 billion and signaling intensifying competition ahead.
- Broadcom shares have gained about 6% this year as of the close on Sept 2, though the stock has lagged broader market indexes which rose 12% in the same period.
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Broadcom Falls 6% as Soft Guidance Overshadows 221% AI Revenue Surge; NVIDIA Inches Higher, AMD Slips
The post Broadcom Falls 6% as Soft Guidance Overshadows 221% AI Revenue Surge; NVIDIA Inches Higher, AMD Slips appeared first on 24/7 Wall St.. Semiconductor investors got a split verdict this morning as Broadcom’s fiscal third-quarter report landed as a guidance and margin story rather than an AI demand story. The sector fund is easing modestly while one large AI peer is pushing higher, which frames the reaction as company-specific rather than …
The chip manufacturer exceeds the analysts' expectations, but investors do not seem to be satisfied. AI-related shares are no longer close to their record levels.
(Los Angeles = Yonhap News) Correspondent Kim Kyung-yoon = U.S. semiconductor company Broadcom posted earnings that exceeded market expectations in the third quarter of this year.
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