Broadcom's revenue outlook for this quarter is lukewarm, with the stock price falling after hours.

Broadcom's revenue outlook for this quarter is lukewarm, indicating that the AI computing power expenditure boom is not as strong as some investors had expected. The tech giant, which supplies chips to companies like Google's parent company Alphabet and Apple, announced its financial report after the market closed on Thursday, forecasting revenue for the quarter ending August 3 to be around $15.8 billion. While this is slightly higher than the average analyst expectation of $15.7 billion, it is about $1 billion lower than some analysts' predictions. This revenue outlook suggests that investors' optimistic expectations for Broadcom's growth driven by AI may be too aggressive. Like Nvidia, Broadcom is seen as a major beneficiary of the surge in AI spending. Data centers rely on Broadcom's chips and network components to handle AI computing tasks. Broadcom's stock fell about 3% in after-hours trading. It closed at $259.93 on Thursday, up 12% so far this year.