Broadcom Drops 5% After Forecasting $34.8 Billion Revenue as Quarterly Sales Jump 86%
Updated
Updated · CNBC · Sep 2
Broadcom Drops 5% After Forecasting $34.8 Billion Revenue as Quarterly Sales Jump 86%
3 articles · Updated · CNBC · Sep 2
Summary
Broadcom fell 5% in extended trading after guiding fiscal fourth-quarter revenue to $34.8 billion, below the $35.03 billion analysts expected.
The weak outlook overshadowed a quarterly beat: adjusted EPS came in at $3.32 versus $3.24 expected, and revenue reached $29.59 billion versus $29.36 billion forecast.
Revenue rose 86% from a year earlier, while net income more than tripled to $13.09 billion; semiconductor revenue surged to $16.7 billion, topping estimates, but infrastructure software missed consensus at $8.75 billion.
AI demand remains central to Broadcom's story, with custom chips for Google, Meta and OpenAI, including the Jalapeno chip developed with OpenAI, while Apple has said it will increase spending with Broadcom for U.S. chip production.
Even so, the stock's 2026 gain of about 6% has trailed the S&P 500's 12%, despite Broadcom's market value swelling to roughly $1.8 trillion after a more than sixfold rally since late 2022.