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Broadcom Shares Slide as Quarterly Revenue Outlook Misses Analyst Expectations
Electronic Technology · Semiconductors · cnbc · 2026-09-02
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Broadcom stock fell 5% in extended trading after the semiconductor firm provided a fiscal fourth-quarter revenue forecast that fell short of Wall Street estimates.
What Happened
Earnings Performance and Market Reaction: Broadcom reported adjusted earnings of $3.32 per share on $29.59 billion in revenue, both exceeding LSEG consensus estimates. Despite these positive results, the company's stock price dropped 5% in after-hours trading due to a cautious outlook for the upcoming quarter.
Revenue Guidance and Expectations: The chipmaker projected revenue of $34.8 billion for the fiscal fourth quarter, which failed to meet the $35.03 billion target anticipated by analysts. This guidance shortfall overshadowed the significant 86% year-over-year revenue growth reported for the current period.
AI Infrastructure and Strategic Partnerships: Broadcom continues to capitalize on the generative AI boom by developing custom silicon for major tech players like Google, Meta, and OpenAI. The company also highlighted its collaboration on the Jalapeno chip and noted increased production commitments from Apple, reinforcing its role in the AI hardware ecosystem.
Segment Performance and Market Context: While infrastructure software revenue reached $8.75 billion, it slightly missed the $8.82 billion consensus forecast. Having seen its market capitalization reach $1.8 trillion, Broadcom's stock has underperformed the broader S&P 500 index so far in 2026, gaining only 6% compared to the index's 12% rise.