Broadcom just reported lower-than-expected revenue guidance for the upcoming quarter, estimating revenue of $14 billion compared to Wall Street's previous predictions of $14.04 billion.
That's not a bad thing, though, because if Broadcom manages to get $14 billion in revenue, it would mark a 51% increase compared to the same period last year.
It would also represent stronger growth than the quarter just ended, which saw revenue rise 47% year-over-year to $13.07 billion.
The company’s CEO, Hock Tan, commented: “Broadcom’s third quarter results reflect the continued strength of our AI and VMware semiconductor solutions.” The company expects about $12 billion of its fiscal year revenue to come from AI, accounting for nearly a quarter of the company’s revenue. This estimate marks an increase of $1 billion compared to previous predictions.
Despite the positive outlook, the company continues to struggle with its earnings in other areas. It reported a net loss of $1.88 billion in the last quarter.
Speaking about the company's growth, Summit Insight senior research analyst Kinngai Chan stated (via Reuters): “We believe it is unreasonable for investors to expect Broadcom to publish results and outlooks like Nvidia's.”
Broadcom shares have gained 75.2% over the past 12 months, but its performance has been turbulent in recent months, in part due to some uncertainty surrounding the changes it has made at VMware. Tan added: “VMware’s transformation continues to progress very well.”
Additionally, a post-earnings conference call confirmed strong performance in the AI department, but considerable declines in other areas such as broadband and non-AI-related networking.
