Broadcom Forecasts Strong Q3 Revenue on AI Chip Demand
Broadcom projected third-quarter revenue above Wall Street expectations as demand for custom AI chips and networking gear continues to grow. The company expects semiconductor revenue from artificial intelligence to rise over 200 percent year-over-year to 16 billion dollars.
BROADCOM INC forecast third-quarter revenue above Wall Street estimates on Wednesday, driven by demand for custom AI chips. The Palo Alto, California-based company expects revenue to exceed the $28.54 billion average analyst estimate compiled by LSEG. Investors are monitoring whether Broadcom’s custom silicon can sustain growth as cloud providers seek alternatives to dominant market processors.
### AI Chip Demand Offsets Mixed Earnings Broadcom shares fell more than 2% in evening trading despite the optimistic forecast. The decline followed a nearly 8% gain the previous week as investors anticipated the results. Second-quarter revenue rose 48% to $22.19 billion, slightly missing the $22.27 billion expected by analysts.
