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Broadcom Stock Dips on Q3 Outlook Miss
3 Sep
Summary
- Broadcom's stock fell due to a Q3 revenue forecast below analyst expectations.
- Despite strong year-over-year growth, the AI chip beat wasn't enough for investors.
- The company reported significant AI semiconductor revenue growth of 221% year-over-year.
Broadcom's stock saw a notable decline on Wednesday, losing approximately 4% before recovering some losses in after-hours trading. This market reaction followed the company's announcement of an anticipated revenue of $34.8 billion for the current quarter, which missed the $35.05 billion consensus forecast from analysts.
Despite the revenue shortfall in outlook, Broadcom's fiscal third quarter results showed impressive year-over-year growth. Quarterly revenue surged 86% to $29.6 billion, and adjusted earnings per share reached $3.32, surpassing Wall Street's expectations. The company highlighted strong demand for its custom AI accelerators and networking solutions.
AI semiconductor revenue, a key driver for the company, demonstrated exceptional growth, increasing by 221% year-over-year and 54% quarter-over-quarter, reaching $16.7 billion. This performance places Broadcom significantly within the AI ecosystem, second only to Nvidia, according to industry analysts.
