Broadcom fourth-quarter revenue falls short of expectations despite AI
revenue rise

Date:
Fri, 06 Sep 2024 15:29:00 +0000

Description:
Broadcoms revenue continues to grow thanks to AI, but other verticals could
be to blame for a net loss.

FULL STORY ======================================================================

Broadcom just declared lower-than-anticipated projections for next-quarter revenue, estimating income of $14 billion compared with previous Wall Street predictions of $14.04 billion.

However, thats not a bad thing, because if Broadcom does manage to draw in
$14 billion in revenue, it would mark a 51% increase compared with the same period last year.

It would also represent greater growth than the quarter just closed, which
saw a 47% year-over-year increase in revenue, which stood at $13.07 billion. Broadcom revenue continues to climb

Company CEO Hock Tan commented: Broadcom's third quarter results reflect continued strength in our AI semiconductor solutions and VMware. The company expects around $12 billion of its fiscal year revenue to come from AI , accounting for nearly a quarter of the companys revenue. This estimation
marks a $1 billion increase compared with previous predictions.

Despite the positive outlook, the company continues to struggle with figures elsewhere. It reported a $1.88 billion net loss for the most recent three-month period.

Speaking about the companys growth, Summit Insight senior research analyst Kinngai Chan stated (via Reuters ): We believe it's unreasonable for
investors to expect Broadcom to post Nvidia-type results and outlook.

Broadcom shares are up 75.2% over the past 12 months, however recent months have seen turbulence in its figures, not least due to some uncertainty surrounding the changes it has made to VMware. Tan added: The transformation of VMware continues to progress very well.

Moreover, a post-earnings conference call confirmed strong performance in the AI department, but considerable dips in other areas like broadband and non-AI networking. More from TechRadar Pro These are the best AI writers Need to upgrade your own setup? Here are the best processors VMware revenues appear
to plummet, but Broadcom says everything is fine



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Link to news story: https://www.techradar.com/pro/broadcom-fourth-quarter-revenue-falls-short-of-e xpectations-despite-ai-revenue-rise


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