US Stocks Alert: Broadcom shares tumble over 14% after hours as AI chip revenue forecast misses expectations

Gelonghui, June 4 — Broadcom’s stock price fell over 14% after hours as the company’s announced revenue forecast for artificial intelligence chips fell short of expectations, indicating that its progress in capturing a larger share of this rapidly growing industry is slower than anticipated by the market. In an announcement on Wednesday, Broadcom stated that AI semiconductor revenue for the third fiscal quarter ending in July would be $16 billion. Data shows that analysts’ average expectation was $17.2 billion. CEO Hock Tan said that for this fiscal year ending in October, Broadcom’s AI chip sales will reach $56 billion, a forecast lower than the previous average expectation of $57.6 billion.