Broadcom stock slip on revenue miss
Broadcom's fiscal second-quarter earnings report revealed revenue that fell short of expectations, leading to a decline in stock price during extended trading. Despite this, the company reported a significant year-over-year revenue increase driven by demand for custom AI chips. Broadcom's net income also saw a substantial rise, and the company anticipates further growth in AI revenue in the upcoming quarter.
- ▪Broadcom reported revenue of $22.19 billion, missing the $22.27 billion estimate.
- ▪Net income increased to $9.31 billion, up 88% from the previous year.
- ▪AI revenue more than doubled to $10.8 billion in the second quarter.
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Broadcom reported weaker-than-expected revenue in its fiscal second-quarter earnings report. The stock slid in extended trading.Here's how the chipmaker did versus LSEG consensus estimates:Earnings per share: $2.44, adjusted, versus $2.40 estimatedRevenue: $22.19 billion versus $22.27 billion estimatedRevenue climbed 48% from $15 billion in the same quarter a year earlier, Broadcom said in a statement. Sales have climbed in recent quarters, driven by demand for custom AI chips, including Google's tensor processing unit.The company said revenue this quarter will be about $29.4 billion, versus $28.53 billion expected by Wall Street analysts. Broadcom shares are up close to 40% this year as of Wednesday's close, topping the Nasdaq's 16% gain.
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