Broadcom Stock Plunges Over 13% in After-Hours Trading, AI Chip Revenue Forecast Falls Short of Expectations

BlockBeats News, June 4th, according to Bitget market data, Broadcom's stock price fell more than 13% in after-hours trading. The company's revenue forecast for its AI chip was below expectations, indicating slower progress in capturing a larger share in this rapidly growing industry than the market had anticipated.

Broadcom stated in an announcement on Wednesday that its AI semiconductor revenue for the third quarter ending in July is expected to be $16 billion. Data shows that analysts' average expectation was $17.2 billion.

Broadcom's CEO, Hock Tan, stated that for the fiscal year ending in October, Broadcom's AI chip sales are projected to be $56 billion, which is lower than the previous average expectation of $57.6 billion.