Broadcom stock reverses lower on a misinterpretation of what the CEO said on the earnings call
CNBC • • general
Key Points:
- Broadcom reported strong fiscal Q4 results with revenue up 28% year-over-year to $18.02 billion and adjusted EPS rising 37% to $1.95, both surpassing analyst expectations.
- The company highlighted robust demand in AI-related products, including a $10 billion order from Anthropic for custom XPUs and a $1 billion initial order from a new XPU customer, driving an AI backlog exceeding $73 billion.
- Despite positive results and guidance, Broadcom's stock fell sharply after CEO Hock Tan's cautious remarks during the Q&A about potential risks of key customers developing in-house AI chips, which raised investor concerns about long-term partnerships.
- Broadcom forecasted fiscal Q1 revenue of $19.1
