Broadcom Shares Fall After Second Quarter Revenue Miss
Broadcom reported second-quarter revenue of 22.19 billion dollars, slightly missing analyst expectations as competition in the custom AI chip market intensifies. Despite the miss, the company forecast third-quarter revenue above estimates and expects AI-related semiconductor sales to grow over 200 percent.
BROADCOM INC missed second-quarter revenue expectations on Wednesday as intensifying competition in custom semiconductors weighed on its AI chip gains. The $22.19 billion in revenue fell short of the $22.27 billion analysts projected, triggering a 13% share price drop overnight. Investors are signaling that even minor misses are unacceptable as the hardware rally faces a crowded field of rivals.
### Custom Chip Rivalry Intensifies Broadcom is navigating a tightening market where NVIDIA CORP maintains the industry standard for AI workloads. MARVELL TECHNOLOGY INC is capturing hyperscale customers and recently forecast second-quarter revenue above analyst estimates. MARVELL TECHNOLOGY INC expects its custom chip business will surpass $10 billion in revenue in 2029.
