Broadcom Corporation (NASDAQ:AVGO)'s merger with VMWare and its outlook for generative artificial intelligence (AI) are likely to take centre stage when the chipmaker reports fourth-quarter results after the closing bell on Thursday, rather than the numbers themselves.
The chipmaker has already guided for 4Q revenue of about $9.27 billion, slightly less than the $9.28 billion consensus estimate, due to sluggish demand for its semiconductors.
Earnings are expected to be steady at $9.71, down from $9.75 in the year-ago quarter.
However, analysts believe its acquisition of virtualization software firm VMWare will help the company reduce business cyclicality and expand product offerings to key enterprise customers.
The deal involves Broadcom paying $61 billion in cash and stock, along with assuming $8 billion of VMware's debt, making it one of the largest technology deals in history.
Ahead of its results, Broadcom’s shares were down 1.2% at $913.35 in early Tuesday afternoon trading. They’ve gained 65% so far this year.
Contact the author at stephen.gunnion@proactiveinvestors.com