Broadcom’s stock surfed the AI trend, now taking a dip.

Key Elements of Article on Broadcom’s Stock


Key Points:

  • Broadcom’s stock has seen a 50% increase in the last three months due to AI optimism.
  • AI revenue is expected to be 35% of semiconductor revenue at over $10 billion.

Broadcom’s stock fell around 3% in after-hours trading following their latest results where AI areas outperformed while other areas showed weakness. For the full fiscal year, Broadcom reiterated its revenue outlook of about $50 billion. The company’s semiconductor business saw a fourfold increase in AI revenue which offset slowdowns in enterprise and telecommunications sectors. Marvell Technology Inc. also noted robust AI performance in its recent results.

The fiscal first-quarter revenue for Broadcom rose to $11.96 billion, slightly above analyst expectations. However, net income decreased from the previous year. The company’s semiconductor-solutions business saw a 4% revenue increase, slightly below consensus. Broadcom ranks ninth in the S&P 500 by market capitalization with a valuation of around $650 billion.