Broadcom Projects $16 Billion in Q3 AI Chip Sales, Falls Short of Expectations

Despite Surpassing Second-Quarter Expectations,

AI Chip Sales Outlook Falls Short

Disappointing Guidance Triggers Sell-Off and Sharp Stock Decline

Broadcom's after-hours stock price plummeted after the company projected that its third-quarter artificial intelligence (AI) semiconductor chip sales would fall short of market expectations.

Reuters Yonhap News

On June 3 (local time), Broadcom announced in a statement that its AI semiconductor revenue for the fiscal third quarter is expected to reach $16 billion. This figure is lower than the Bloomberg consensus estimate of $17.2 billion.

Broadcom projected its total revenue would reach approximately $29.4 billion. While the average analyst forecast was $28.6 billion, some projections were several billion dollars higher than this average.

This quarter’s results exceeded expectations. Fiscal second-quarter revenue surged 48% to $22.2 billion, in line with the analysts’ average estimate of $22.1 billion. Excluding one-time items, earnings per share (EPS) increased to $2.44, beating the market estimate of $2.39.

AI semiconductor sales recorded $10.8 billion. The average analyst projection was $10.7 billion. This figure includes custom accelerator chips and networking semiconductors used for developing and operating AI models.

As the outlook fell short of expectations, the share price plunged. After the market closed, shares were trading down more than 11% at $423.99.

This content was produced with the assistance of AI translation services.