Broadcom earnings beat expectations but Q4 forecast falls short
CEO Hock Tan said in a statement that Broadcom expects to record USD 12 billion in sales from AI parts and custom chips in fiscal 2024, higher than a previous forecast of USD 11 billion.
US chipmaker Broadcom has reported fiscal third quarter results that beat Wall Street expectations but its forecast for fourth-quarter revenue of USD 14.0 billion fell slightly short of the USD 14.13 billion expected due to sluggish spending in broadband.
While adjusted earnings of USD 1.24 per share were better than the USD 1.22 estimate, the USD 13.07 billion revenue topped the expected $13.03 billion.
A strong showing in the AI segments was, however, offset by weak demand in other divisions.
During a post-earnings conference call, Broadcom officials said revenue in its broadband segment fell 49% in the third quarter and non-AI networking dropped 41%.
California-based Broadcom’s custom chips, which help move around large quantities of data, have seen more orders from firms seeking to streamline their data operations, according to Reuters.
CEO Hock Tan said in a statement that Broadcom expects to record USD 12 billion in sales from AI parts and custom chips in fiscal 2024, higher than a previous forecast of USD 11 billion.
“Broadcom’s third quarter results reflect continued strength in our AI semiconductor solutions and VMware,” Tan said in a statement.
The company reported USD 7.27 billion in semiconductor sales in the third quarter, 5% higher than last year’s figures for the same period.
Investor expectations for AI-linked companies remain sky high, but chip giant Nvidia’s quarterly forecast fell short of lofty expectations in August.
