Broadcom Shares Decline as Q4 Revenue Forecast Misses Estimates
Broadcom (NASDAQ:AVGO) shares fell nearly 2% in premarket trading after the company projected fourth-quarter revenue of $34.8 billion, below analysts' average estimate of $35.05 billion. Despite forecasting AI chip sales above expectations at $21.7 billion versus an estimated $21.33 billion, the overall revenue miss led to a drop in share price. CEO Hock Tan outlined long-term projections during the earnings call, expecting fiscal 2027 revenue of $115 billion and $230 billion for 2028. These forward-looking statements helped limit further losses as investors assessed Broadcom's growth trajectory beyond short-term concerns. The company faces increasing competition in custom AI chips from rivals like Marvell, which recently secured a major deal with Google potentially worth up to $120 billion through fiscal 2033. Broadcom is also expanding manufacturing partnerships and reducing supplier dependency amid rising demand for AI infrastructure.
Topics: AI Chips Semiconductors Stock Performance