Broadcom stock fell more than 14.4% in after-hours trading, as AI chip revenue forecast misses expectations

According to Odaily, shares of Broadcom (AVGO) dropped over 13% in after-hours trading after the company's artificial intelligence chip revenue forecast fell short of market expectations. The company said it expects AI semiconductor revenue of $16 billion for the third fiscal quarter ending in July, compared to the average analyst estimate of $17.2 billion. Broadcom CEO Hock Tan further noted that AI chip sales for the fiscal year ending in October are expected to reach $56 billion, below the previous average estimate of $57.6 billion. This indicates that the company's progress in capturing a larger share of the fast-growing AI chip market has been slower than expected.