GoKawiilBroadcom CEO Hock Tan speaks at the digital X event in Cologne, Germany, on Sept. 13, 2022.
Broadcom 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 artificial intelligence 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.
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