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Time of India
a day ago
- Business
- Time of India
Broadcom rides on AI chip demand to deliver upbeat revenue forecast
Broadcom forecast third-quarter revenue above Wall Street estimates on Thursday, betting on strong demand for its networking and custom AI computing chips. However, the company's shares fell 4% in extended trading, after gaining about 12% this year, as the forecast failed to impress investors who have bet heavily on chip stocks, anticipating substantial growth driven by advancements in generative AI technology . Broadcom forecast third-quarter revenue of around $15.80 billion, compared with analysts' average estimate of $15.71 billion, according to data compiled by LSEG. "Clearly, expectations were high coming into the print with the stock rising almost 30% in the past month," said Kinngai Chan, senior research analyst at Summit Insights Group. Broadcom, a key player in the AI hardware ecosystem, helps design custom processors that are highly specialized integrated circuits designed for AI and cloud computing companies such as OpenAI and Google. The Palo Alto, California-based company has begun shipping its latest networking chip, the Tomahawk 6, designed to accelerate AI workloads. The networking chip doubles the performance from its predecessor and significantly improves the efficiency of bits flying across data center networks. "We expect growth in AI semiconductor revenue to accelerate to $5.1 billion in Q3, delivering ten consecutive quarters of growth, as our hyperscale partners continue to invest," Broadcom CEO Hock Tan said. Non-AI semiconductor revenue is close to the bottom and has been relatively slow to recover, Tan said on a post-earnings call. Revenue from Broadcom's semiconductor segment, which supplies products for data centers and networking, rose 16.7% to $8.41 billion in the second quarter. The company reported quarterly revenue of $15 billion, compared with estimates of $14.99 billion.
Time of India
3 days ago
- Business
- Time of India
Broadcom rides on AI chip demand to deliver upbeat revenue forecast
By Harshita Mary Varghese and Max A. Cherney Broadcom forecast third-quarter revenue above Wall Street estimates on Thursday, betting on strong demand for its networking and custom AI computing chips. However, the company's shares fell 4% in extended trading, after gaining about 12% this year, as the forecast failed to impress investors who have bet heavily on chip stocks, anticipating substantial growth driven by advancements in generative AI technology . Broadcom forecast third-quarter revenue of around $15.80 billion, compared with analysts' average estimate of $15.71 billion, according to data compiled by LSEG. "Clearly, expectations were high coming into the print with the stock rising almost 30% in the past month," said Kinngai Chan, senior research analyst at Summit Insights Group. Broadcom, a key player in the AI hardware ecosystem, helps design custom processors that are highly specialized integrated circuits designed for AI and cloud computing companies such as OpenAI and Google. The Palo Alto, California-based company has begun shipping its latest networking chip, the Tomahawk 6, designed to accelerate AI workloads. The networking chip doubles the performance from its predecessor and significantly improves the efficiency of bits flying across data center networks. "We expect growth in AI semiconductor revenue to accelerate to $5.1 billion in Q3, delivering ten consecutive quarters of growth, as our hyperscale partners continue to invest," Broadcom CEO Hock Tan said. Non-AI semiconductor revenue is close to the bottom and has been relatively slow to recover, Tan said on a post-earnings call. Revenue from Broadcom's semiconductor segment, which supplies products for data centers and networking, rose 16.7% to $8.41 billion in the second quarter. The company reported quarterly revenue of $15 billion, compared with estimates of $14.99 billion.
CNA
23-04-2025
- Business
- CNA
TI forecasts second-quarter revenue above estimates, abating tariff concerns
Texas Instruments forecast second-quarter revenue above Wall Street estimates on Wednesday, betting on robust demand for its analog chips despite widespread economic uncertainty stemming from U.S. tariffs. The optimistic outlook from TI- the first among major U.S. chipmakers to report results for the March quarter - could help allay some of the concerns over the adverse impact of tariffs on semiconductor companies. Shares of the company rose more than 6 per cent in extended trading after dropping more than 17 per cent this year as investor anxiety stemming from a worsening macroeconomic outlook weighed on the sector. The company's strong quarterly forecast is being driven by "cyclical demand recovery and possibly some tariff pull-ins," said Kinngai Chan, a senior analyst at Summit Insights Group. All of TI's markets grew sequentially with the exception of a seasonal decline in personal electronics, the company said in a statement. TI's results signal a gradual rebalancing of supply and demand in the analog semiconductor market, as the company works to clear surplus inventory that resulted from customers over-purchasing during the pandemic. The company expects revenue in the range of $4.17 billion to $4.53 billion for the second quarter, compared with analysts' average estimate of $4.10 billion, according to data compiled by LSEG. It might still be too early to ascertain the impact of increased levies and escalating Sino-U.S. trade tensions on the company and the broader chip industry due to pending tariff negotiations, said Stifel analyst Tore Svanberg. "There does not seem to be much of an impact (from tariffs) for now." TI expects earnings between $1.21 per share and $1.47 per share for the second quarter, compared with analysts' average estimate of profit of $1.23 per share. Revenue in the first quarter rose 11 per cent to $4.07 billion, beating estimates of $3.91 billion and snapping a nine-quarter streak of sales declines.
Yahoo
03-03-2025
- Business
- Yahoo
Nvidia Stock Downgraded by Summit Insights Group Amid AI Market Concerns
Nvidia (NVDA, Financials) received a downgrade from Summit Insights Group following its fourth-quarter earnings report, marking the only negative rating from a Wall Street firm despite the company's strong financial performance. Warning! GuruFocus has detected 3 Warning Signs with NVDA. Driven by demand for artificial intelligence gear, the chipmaker revealed in the current quarter a 78% rise in revenue and an 80% increase in profit. But downgrading Nvidia from Buy to Hold, KinNgai Chan, an analyst with a 70% success history, raised worries about the sustainability of its expansion path. Chan cautioned that the market for artificial intelligence is changing as AI inference calls for less processing capability than AI model development. This tendency would lower demand for Nvidia's high-performance processors, which have the main engine of the company's growth. Although data center capital expenditures for artificial intelligence training remain strong, Chan thinks Nvidia's price no longer offers a good risk-reward ratio. Further influencing the cautious attitude are worries about growing competitiveness in the artificial intelligence business. Operating on older and less costly H800 processors, the DeepSeek AI model developed in China for $6 million indicates possible issues to demand for Nvidia's most expensive graphics processing units. Investors reacted to the downgrading with a stock price drop. Nvidia shares were trading at $118.94 as of Monday, 11:03 AM GMT-5; down 4.8%, for the day. The most recent average price estimate of $179.77 points to a 51.1% upside from present levels. This article first appeared on GuruFocus. Sign in to access your portfolio
