Broadcom stock falls 12% after hours on $16B AI miss
Business
Broadcom's stock dropped 12% after hours on Wednesday after the company said its upcoming AI chip revenue will likely fall short of what Wall Street was hoping for.
For the July quarter, Broadcom expects $16 billion from AI chips, about $1.2 billion less than analysts predicted.
Broadcom estimates $56B AI chip revenue
The full-year outlook wasn't much better, with Broadcom estimating $56 billion in AI chip revenue instead of the expected $57.6 billion.
Still, not all news was bad: sales jumped 48% year over year to $22.2 billion last quarter, and deals with big names like Alphabet and Meta are growing.
Investors remain cautious, though, even as Broadcom starts shipping chips to OpenAI and plans to boost capacity through 2029.