Broadcom (AVGO) Stock Falls After Q4 Guidance Misses Despite 221% AI Chip Sales Surge
TLDR
- Broadcom Q3 revenue rose 86% to $29.59 billion, beating Wall Street estimates of $29.43 billion
- AI chip revenue surged 221% to $16.7 billion, with Q4 expected to hit $21.7 billion (236% growth)
- Broadcom raised its FY2027 AI chip outlook to $115 billion and doubled down on $230 billion for FY2028
- Q4 revenue guidance of $34.8 billion came in slightly below the $35 billion analyst estimate, sending the stock lower
- AVGO fell around 2.2% in premarket Thursday; analysts maintain a Strong Buy with an average price target of $505.38
Broadcom (AVGO) posted strong fiscal third-quarter results on Wednesday, but the stock slipped anyway. AVGO was down about 2.2% in premarket trading Thursday, after swinging in both directions during after-hours Wednesday.
The headline numbers were solid. Q3 revenue came in at $29.59 billion, up 86% year-over-year and above the Wall Street estimate of $29.43 billion. Adjusted EPS of $3.32 beat expectations of $3.22 to $3.24, and nearly doubled from $1.69 a year ago.
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