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Broadcom stock wavers as chipmaker's strong results 'not enough to keep investors happy'
finance.yahoo.com • • general
Key Points:
- Broadcom's stock initially dropped as much as 4% in after-hours trading following its fiscal Q3 earnings report but later trimmed some losses.
- The company reported adjusted earnings per share of $3.32, beating Wall Street expectations of $3.23, and quarterly revenue of $29.6 billion, up 86% year over year, surpassing forecasts.
- AI semiconductor revenue surged 221% year over year to $16.7 billion, reflecting strong demand for custom AI accelerators and networking products.
- Despite strong revenue growth, Broadcom's forecasted revenue of $34.8 billion for the next quarter fell short of analyst expectations of $35.05 billion, contributing to investor disappointment.
- Analysts note Broadcom is a key player in the AI and data center ecosystem, second only to Nvidia, but current results were insufficient to satisfy investor expectations given the company's AI leverage.
