Latest news with #BROADCOM
Business Times
3 days ago
- Business
- Business Times
Broadcom gives tepid forecast, missing loftiest expectations
BROADCOM, a chip supplier to companies like Alphabet and Apple, gave a lackluster revenue forecast for the current quarter, suggesting that the AI spending frenzy isn't as strong as some investors anticipated. Sales will be about US$15.8 billion in the fiscal third quarter, which ends Aug 3, the company said in a statement on Thursday. Though analysts had estimated US$15.7 billion on average, some projections ranged US$1 billion higher than that figure, according to data compiled by Bloomberg. The outlook signals that investor expectations for Broadcom's AI-fuelled growth run were too aggressive. Like Nvidia, the company is seen as a key beneficiary of a surge in artificial intelligence spending. Data centre companies rely on its custom chips and networking components to handle AI computing workloads. Broadcom's stock fell about 2 per cent in extended trading. The shares had earlier closed at US$259.93 in New York, leaving them up 12 per cent this year. Broadcom shares had climbed more than 30 per cent since the company delivered its previous results in March, bringing its market value to US$1.2 trillion. Much of the gain came in the past month — fuelled by signs that heavy spending on artificial intelligence gear is poised to continue in the coming months. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up That made it hard for Broadcom to impress investors, even with numbers that generally topped estimates. In the second quarter, which ended May 4, sales rose 20 per cent to US$15 billion. Profit, excluding some items, was US$1.58 a share. Analysts had estimated revenue of about US$15 billion and earnings of US$1.56 a share. Chief executive officer Hock Tan said AI-related revenue grew 46 per cent to US$4.4 billion in the period, driven by demand for networking equipment. Sales from AI will total US$5.1 billion in the current period, he said. Analysts estimated US$4.79 billion, with some projections as high as US$5.29 billion. Broadcom investors have focused lately on its custom design business, which is benefiting from sales to clients who want components to run AI workloads. The company also makes switch chips to direct traffic between the pricey graphics processors that train and run AI models. The chipmaker just began shipping the latest version of its Tomahawk switch, which it said can replace six of the previous version. Broadcom also makes connectivity components for the iPhone and sells virtualization software for running networks. Tan has built one of the most valuable companies in the chip industry through a string of acquisitions. He also has assembled a software unit that's now approaching the scale of Broadcom's semiconductor operations. That reach makes the company's forecasts a bellwether for demand over a broad swath of the technology industry. BLOOMBERG
Forbes
16-04-2025
- Business
- Forbes
Up 12% In A Week, What's Happening With AVGO Stock?
Illustration of BROADCOM, France, March 7, 2025. (Photo by Riccardo Milani / Hans Lucas / Hans ... More Lucas via AFP) (Photo by RICCARDO MILANI/Hans Lucas/AFP via Getty Images) Broadcom Inc. (NASDAQ: AVGO) stock has risen 12% over the past five days due to two key developments: a broader market rebound after President Trump suspended reciprocal tariffs for 90 days, and the company's announcement of a $10 billion share buyback program. Despite the recent gains, AVGO is still down over 20% this year. Such fluctuations are not unusual for the stock—AVGO fell 36% during the 2022 inflation-driven downturn and dropped 48% during the COVID-19-related market selloff in 2020. However, for investors seeking a potentially more stable and high-performing alternative, consider the Trefis High Quality Portfolio, which includes 30 stocks with a strong record of consistently outperforming the S&P 500 over the past four years. Broadcom's key financial indicators highlight its strong foundation: For long-term investors, the recent decline in AVGO stock could offer a compelling entry point, considering the company's solid fundamentals and AI leadership. Those sensitive to volatility should consider hedging, consulting a financial advisor, or diversification, such as the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark to produce strong returns for investors. A calm, strategic approach is crucial for wealth generation during market volatility. Invest with Trefis Market Beating Portfolios | Rules-Based Wealth
