Broadcom maintains fiscal 2027 AI sales forecast above $100 billion despite recent stock decline and Google demand concerns.
Broadcom (NASDAQ:AVGO) shares fell 6% over the past month, trimming year-to-date gains to 13%. The decline followed the company’s latest earnings report, which reiterated expectations for AI sales exceeding $100 billion in fiscal 2027 without adjusting guidance.
Analysts had anticipated stronger demand from Google for Broadcom’s custom AI chips, but commentary suggested the impact was less than expected. The company’s unchanged outlook contrasts with market reactions, as investors reassess growth projections amid broader tech sector volatility.
Jim Cramer, a long-time supporter of Broadcom CEO Hock Tan, acknowledged misjudging the Google partnership’s upside, citing lower-than-anticipated demand and competition from NVIDIA’s TPUs.