Broadcom Inc (Broadcom Corporation (NASDAQ:AVGO)) stock dipped 4.6%, to $880.00, on softer guidance despite third quarter revenue being up 5% on last year, and, earnings coming in ahead of expectations.
The chipmaker disappointed the Street as it forecast fourth quarter revenue of $9.27 billion, versus $9.28 billion consensus, and, cautioned over sluggish demand for its semiconductors.
"Broadcom's third quarter results were driven by demand for next generation networking technologies as hyperscale customers scale out and network their AI clusters within data centers," Broadcom CEO Hock Tan said in a statement.
"Our fourth quarter outlook projects year-over-year growth, reflecting continued leadership in networking for generative AI."
The chipmaker forecast fourth revenue of about $9.27 billion, slightly less than the $9.28 billion consensus estimate, as the company signaled sluggish demand for its semiconductors.
Broadcom, though, stated that it is optimistic generative artificial intelligence will keep demand for its AI networking chips “solid” along with an expected boost in sales from Apple iPhone launch.