Broadcom Revenue Growth Outpaces Stock Performance Amid Extended Guidance
Broadcom (AVGO) stock has declined by about 23% from its 52-week high, with a recent drop following weaker-than-expected fiscal Q4 revenue guidance. However, the company extended its long-term AI revenue outlook to fiscal 2028, projecting $115 billion in fiscal 2027 and $230 billion by fiscal 2028. In fiscal Q3 2026, Broadcom's AI semiconductor segment generated $16.7 billion in revenue—accounting for nearly half of total consolidated sales—and custom accelerators now represent the majority of its AI business. The company is ramping up production on multiple next-generation chips and has secured long-term supply agreements to support future growth. Despite strong top-line expansion, gross margins are under pressure due to higher memory content in newer products like XPUs. Management remains confident about maintaining operating margin stability as revenue outpaces spending.
Topics: AI revenue revenue guidance semiconductors stock performance