Broadcom Sinks 14% on Soft AI Chip Outlook Despite Earnings Beat, Dragging Down AMD and Intel
Broadcom reported record revenue and earnings, but investors sold shares after its AI chip forecast fell below Wall Street’s most aggressive expectations.
- Broadcom shares tumbled more than 12% in after-hours trading Wednesday, erasing over $300 billion in market value after the company's third-quarter AI chip sales forecast of $16 billion missed aggressive Wall Street estimates.
- Disappointed investors punished the stock after Broadcom declined to raise its long-term AI revenue target, as the market demanded perfection rather than merely exceptional results.
- CEO Hock Tan reported AI semiconductor revenue surged 143% year over year to $10.8 billion, with the company achieving record revenue of $22.2 billion and adjusted earnings per share of $2.44.
- Thursday's sell-off rippled across the semiconductor sector, with Nvidia, AMD, Intel, Micron, and Qualcomm falling between 1% and 7%, while South Korea's KOSPI dropped 1.8%.
- Despite the short-term dip, Tan described AI demand as "simply insatiable," and Bernstein analyst Stacy Rasgon said the company's story "gets interesting again once we enter 2027.
26 Articles
26 Articles
The title lost more than 15% in the first exchanges. The New York Stock Exchange is evolving in order dispersed on Thursday, with the technology sector accusing the blow...
Broadcom plummeted on Thursday following the opening of the New York stock exchanges. The American chipmaker posted higher revenue and profit than expected last quarter due to strong demand for AI chips, but the outlook failed to meet investors' high expectations. The stock fell by more than 14 percent. This is Broadcom's largest daily loss in over a year.
Stocks Fall as Broadcom’s Outlook Fails to Inspire: Markets Wrap
(Bloomberg) -- A selloff in high-flying chipmakers dragged down stocks, with Broadcom Inc.’s underwhelming outlook testing the artificial-intelligence trade that has powered the market from war-driven lows.
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