Broadcom's AI Revenue Soars, But Stock Falls on Mixed Earnings
Broadcom has raised its AI revenue outlook to $12 billion for the year, driven by demand for ethernet networking and custom accelerators in AI data centers. Despite beating expectations with $13.07 billion in fiscal third-quarter revenue, boosted by the VMware acquisition, Broadcom's stock fell 6.7% in after-hours trading due to a slight miss in semiconductor solutions revenue and a revenue forecast for the next quarter that fell short of analysts' expectations.
In the third quarter, semiconductor solutions revenue rose 5% to $7.27 billion, but missed the consensus estimate of $7.42 billion, while infrastructure solutions, benefiting from VMware, surged 200% to $5.80 billion, beating estimates. Broadcom also reported a net loss of $1.88 billion, largely due to one-time charges. The company expects about $14 billion in revenue for the fourth quarter, slightly below the $14.1 billion projected by analysts.
