Broadcom’s shares fell more than 3% in extended trading after the chipmaker projected fourth-quarter revenue of $34.8 billion, below the $35.03 billion average estimate from analysts. The company’s stock has gained about 6% over the past year.
The revenue shortfall comes despite Broadcom forecasting fourth-quarter AI chip sales of $21.7 billion, which slightly exceeds the $21.33 billion estimate from analysts. In the third quarter, AI chip sales more than tripled to $16.7 billion, while total revenue reached $29.59 billion, surpassing the $29.25 billion consensus estimate. Adjusted earnings for the period were $3.32 per share, above the $3.21 per share forecast.
The weaker-than-expected guidance follows Broadcom’s third-quarter results, which had already reflected strong demand in AI-related segments. The company has been expanding manufacturing capacity through agreements such as a multi-year memorandum of understanding signed with Samsung Electronics in July to reduce reliance on individual suppliers.
Competitive dynamics in the AI chip market remain intense. Marvell recently secured a custom-chip deal with Google potentially worth up to $120 billion through fiscal 2033, with Google also committing up to $12.2 billion in investment. Broadcom’s performance contrasts with its peers, including Nvidia, which has continued to benefit from robust AI infrastructure demand.
