Broadcom Stock Falls Despite Strong Q3 Results Amid High AI Demand
Despite reporting strong third-quarter results driven by robust demand for its AI chips, Broadcom's stock fell more than 4% on Thursday. The chipmaker reported revenue of $29.6 billion—up 86% year-over-year—and adjusted earnings per share (EPS) of $3.32, both exceeding expectations. However, the results were not enough to satisfy investors who had high hopes for a larger beat given Broadcom's significant exposure to AI growth. Analysts noted that while the company raised its guidance and saw strong demand from tech firms building data centers, the revenue forecast for the next quarter fell slightly below analyst estimates at $34.8 billion versus an expected $35.05 billion. StoneX analyst Cody Acree suggested investors were looking for a more substantial beat given Broadcom's AI-driven growth trajectory. CEO Hock Tan highlighted continued strong demand for custom AI accelerators and networking solutions, but the stock remains underperforming compared to peers like Nvidia.
