US EditionBroadcom Shares Drop as Revenue Forecast Fails to Impress
- Broadcom Inc. Reported fiscal second-quarter earnings beating expectations and forecast third-quarter revenue around $15.8 billion, slightly above analyst estimates.
- This performance follows Broadcom's rise to a $1 trillion valuation in December driven by expanding demand in its AI chip business amid an ongoing AI boom.
- During the quarter, Broadcom earned $4.97 billion net income, with AI revenue at $4.4 billion and an anticipated $5.1 billion AI revenue for the next quarter, supported by hyperscale cloud customers.
- Shares fell nearly 4% in premarket trading due to a weaker forecast for non-AI semiconductor revenue and high investor expectations, despite continued optimism from analysts on Broadcom's AI growth trajectory.
- Broadcom's focus on AI-related networking chips and custom AI processors for cloud providers suggests sustained growth potential, although some analysts note possible near-term volatility in non-AI segments.
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BNN BloombergBroadcom shares drop as revenue forecast fails to impress
Broadcom shares fell nearly 4 per cent in premarket trading on Friday, after the company's third-quarter revenue forecast failed to impress investors who have been extremely bullish on chip stocks amid an artificial intelligence boom.The Palo Alto, California-based company, which supplies semiconductors
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Despite its strong positioning in the boom of artificial intelligence, Broadcom found that in a market overburdened with expectations, even good results may not be enough.
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