Broadcom’s stock declined 3% in after-hours trading following the release of its fiscal fourth-quarter results and guidance, which fell short of Wall Street expectations.
The company projected revenue of $34.8 billion for the quarter, above the consensus estimate of $29.4 billion but below some investor expectations. Adjusted earnings per share were also expected to near $3.22, aligning with forecasts. The guidance followed a period in which Broadcom’s shares had already retreated roughly 23% from their all-time high, trading within a 52-week range of $289.96 to $495.
Morgan Stanley maintained an Overweight rating on Broadcom ahead of the earnings release but highlighted a key divergence in AI revenue projections. The bank’s own forecast of $120 billion in AI-related revenue by fiscal 2027 was exceeded by a bullish estimate of $150 billion, underscoring uncertainty over the pace of AI-driven growth for the chipmaker.
The broader market showed limited movement, with the S&P 500 and Nasdaq edging fractionally lower. Treasury yields rose after Federal Reserve Governor Kevin Warsh’s hawkish remarks at the Jackson Hole symposium, where he indicated that additional measures may be required to address inflationary pressures.
