Broadcom projects $16 billion in AI chip sales for Q3, falling short of Wall Street’s $17.2 billion estimate.
Broadcom’s stock plunged after the company forecast $16 billion in AI chip sales for its fiscal third quarter, missing analysts’ expectations of $17.2 billion. The tech firm reported strong fiscal second-quarter earnings but failed to meet lofty AI revenue targets.
Wall Street had anticipated a higher outlook following Broadcom’s recent performance and industry trends. The company’s AI chip segment has been a key growth driver amid rising demand for advanced semiconductors.
The Dow Jones index rose sharply on Thursday, but Broadcom shares dropped 15% in response to the earnings report, contrasting with broader market gains.