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Jim Cramer Says “Someone Must Know Something” About Broadcom Inc. (NASDAQ:AVGO)’s Post-Earnings Share Dip
Yahoo Finance • • business
Key Points:
- Broadcom Inc. reported fiscal Q3 earnings with $29.6 billion in revenue and $3.32 EPS, beating analyst estimates, driven by a 221% annual increase in semiconductor revenue to $16.7 billion.
- The company raised its AI semiconductor revenue guidance to $115 billion for FY 2027 and $230 billion for FY 2028, highlighting its role in AI infrastructure through partnerships and Ethernet product shipments.
- Despite strong Q3 results, Broadcom's Q4 revenue guidance of $34.8 billion missed analyst expectations, and AI semiconductor growth is expected to slow to 30% sequentially from Q3's 54%, raising concerns about growth peaking and margin compression from the VMware acquisition.
- Snowflake Inc. shares surged 21% after reporting Q2 FY27 earnings, driven by strong adoption of its Cortex AI platform, with over 60% of accounts using CoCo AI and 40% using the CoWork workplace platform, signaling progress in AI monetization.
- Analyst Jim Cramer noted Broadcom as a "conference call" stock with nuanced growth prospects, contrasting it with Snowflake's strong market enthusiasm and potential for a significant upward move.
