Broadcom reported earnings per share of $3.32, surpassing the expected $3.24, and revenue of $29.59 billion, which also exceeded the $29.36 billion forecast. However, the company anticipates revenue of $34.8 billion for the fiscal fourth quarter, falling short of the $35.03 billion analysts expected.
This guidance has led to a decline in share price, despite a significant year-over-year revenue increase of 86% from $15.95 billion and a net income that more than tripled to $13.09 billion. Broadcom has benefited from the artificial intelligence boom, supplying custom chips to major companies like Google, Meta, and OpenAI, and its stock has increased over sixfold since late 2022.
Nevertheless, its shares have underperformed compared to the S&P 500 this year, gaining only 6% against the index's 12% rise. The semiconductor revenue exceeded expectations, reaching $16.7 billion, while infrastructure software revenue fell slightly short at $8.75 billion. Broadcom executives are set to discuss these results further in a conference call