Broadcom 2023 Q4 Forecast: Phone Chip Sales Dip and AI Revenue Growth Disappoints, Stock Reacts
Broadcom's latest quarterly forecast reveals a slowdown in smartphone chip demand and a less robust AI-driven revenue increase than anticipated, impacting investor expectations despite strong Q3 results.
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Highlights
- Broadcom's Q4 2023 sales guidance falls short due to weakening smartphone chip demand and a smaller AI revenue boost than projected.
- Q3 earnings per share and revenue exceeded analyst estimates, reflecting solid performance.
- Shares declined from their record high but maintain positive gains for the year.
Broadcom (AVGO) reported a Q4 2023 sales outlook of approximately $9.27 billion, marking a 4% increase year-over-year but slightly below Wall Street expectations. The anticipated surge in revenue fueled by the AI sector, especially following NVIDIA's strong quarterly results, did not fully materialize.
For Q3 fiscal 2023, Broadcom posted earnings per share of $10.54 and revenue of $8.88 billion, both surpassing analyst forecasts.
The semiconductor solutions division saw a 4.8% revenue increase to $6.94 billion, while the infrastructure software segment grew 5.2% to $1.94 billion.
Despite a roughly 5% intraday share price drop following the guidance announcement, Broadcom's stock remains well above its previous levels, closing at an all-time high just prior, and continues to perform strongly throughout 2023.
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