TECH - Broadcom and Marvell Face Stock Dips Despite High Hopes in AI Chip Sector | Benzinga
Broadcom Inc (NASDAQ:AVGO) announced it anticipates $10 billion in AI-related chip revenue this year but saw its stock drop after its yearly forecast underwhelmed investors.
Broadcom reported a quarterly net revenue of $11.96 billion, topping analyst predictions of $11.71 billion and EPS of $10.99 per share, which beat the analyst consensus estimate of $10.29.
Despite a significant AI revenue increase and a 26% stock rally in 2024 driven by AI optimism, Broadcom’s unchanged $50 billion annual revenue forecast led to a slight stock dip in after-hours trading, Reuters reports.
The company’s AI revenue quadrupled to $2.3 billion in the fiscal first quarter, balancing a cyclical slowdown in enterprise and telecom sectors. Broadcom’s broad portfolio includes significant software ...