Broadcom shares sank more than 15 percent in early trading on Thursday before closing just over 12 percent lower, erasing more than $285 billion (£212bn) from its market capitalisation, after it announced earnings that were slightly above analysts’ predictions, but did not meet investors’ sky-high expectations.
Broadcom gave guidance of $29.4bn in revenue for the current quarter, which was higher than analysts had predicted, according to Visible Alpha.
Analysts noted that Broadcom reiterated, rather than raising, expectation that it would bring in $100bn in revenue from AI chips for fiscal 2027, which appeared to disappoint investors.
Broadcom chief executive Hock Tan. Image credit: Broadcom
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