GoKawiilBroadcom reported weaker-than-expected revenue in its fiscal second-quarter earnings report.
The stock slid in extended trading and fell further after CEO Hock Tan did not raise the company's full-year target of $100 billion in AI chip sales.
Here's how the chipmaker did versus LSEG consensus estimates:
Earnings per share: $2.44, adjusted, versus $2.40 estimated
$2.44, adjusted, versus $2.40 estimated Revenue: $22.19 billion versus $22.27 billion estimated
Revenue climbed 48% from $15 billion in the same quarter a year earlier, Broadcom said in a statement. Sales have climbed in recent quarters, driven by demand for custom AI chips, including Google's tensor processing unit.
The company said revenue this quarter will be about $29.4 billion, versus $28.53 billion expected by Wall Street analysts.
Broadcom shares are up close to 40% this year as of Wednesday's close, topping the Nasdaq's 16% gain. The stock has multiplied almost ninefold since the end of 2022, when ChatGPT kicked off the generative AI boom.
Net income increased to $9.31 billion, or $1.91 per share, up 88% from $4.97 billion, or $1.03 per share in the same quarter a year earlier. Adjusted earnings exclude stock-based compensation and tax adjustments.
Broadcom helps other technology companies build custom chip designs, offering intellectual property and other essential technologies that AI chips require. It has attracted increased attention from investors as cloud giants design their own custom chips. In December, Tan said that Anthropic had placed an order for $10 billion in AI chips.
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