Lates News

Broadcom's revenue outlook for this quarter is lukewarm, indicating that the spending boom on artificial intelligence (AI) computing power 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 after the market closed on Thursday that it expects 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 had predicted. This revenue outlook suggests that investors' optimistic expectations for AI driving Broadcom's growth may be too aggressive. Like Nvidia, Broadcom is seen as a key 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, closing at $259.93 on Thursday, up 12% so far this year.