Broadcom forecast fourth-quarter revenue of approximately $34.8 billion, below the $35.03 billion average estimate compiled by LSEG from Wall Street analysts.
The company also raised its fiscal fourth-quarter AI chip sales forecast to $21.7 billion, exceeding the $21.33 billion estimate tracked by Visible Alpha. In the fiscal third quarter, Broadcom reported total revenue of $29.59 billion and adjusted profit of $3.32 per share.
Shares fell more than 3% in after-hours trading following the announcement. Year-to-date, the stock has gained about 6%, underperforming peers and the broader chip index.
Broadcom’s third-quarter AI chip sales more than tripled to $16.7 billion, reflecting strong demand in the segment despite the softer revenue outlook. The company’s guidance reflects broader market dynamics and supply chain adjustments, including a multi-year agreement with Samsung Electronics worth over $200 billion signed in July to diversify manufacturing partners.
Last month, rival Marvell secured a custom chip deal with Google potentially generating $120 billion in revenue by fiscal 2033, with Google taking a stake of up to $12.2 billion in Marvell.
