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Weak guidance pressured the stock

Broadcom shares fell 5% in after-hours trading on Wednesday after the chipmaker's revenue forecast for the current period came in below market expectations. Although the company posted strong financial results for the latest quarter, investors focused on its outlook.

The company said it expects revenue of $34.8 billion in the fiscal fourth quarter. Analysts had forecast an average of $35.03 billion, according to LSEG data.

Profit growth stood out in quarterly results

Broadcom's quarterly revenue rose 86% from a year earlier. Net profit climbed to $13.09 billion from $4.14 billion a year ago, while earnings per share increased to $2.68 from 85 cents.

By business segment, the semiconductor unit beat market expectations. Revenue from infrastructure software, meanwhile, came in slightly below analysts' estimates.

  • Semiconductor revenue came in at $16.7 billion, compared with a StreetAccount estimate of $15.2 billion.
  • Infrastructure software revenue was reported at $8.75 billion, versus expectations of $8.82 billion.

AI orders remain strong, but the market is focused on the near term

Projects linked to Google, Meta and OpenAI are in the spotlight

Broadcom is seen as one of the biggest beneficiaries of the boom in artificial intelligence spending. The company designs custom chips for customers including Google, Meta and OpenAI, and highlighted the Jalapeno chip developed with OpenAI in the latest quarter.

Management expects shipments of Google's Ironwood tensor processing units to Anthropic to accelerate, along with higher deliveries of TPU 8i chips to Google. Broadcom also said it expects to deliver processor chips worth tens of billions of dollars annually to Google over the next several years. The company said Jalapeno shipments to OpenAI will continue, while production shipments of the custom MTIA accelerator developed for Meta are also expected.

Even so, the stock's performance has been more muted this year. As of Wednesday's close, Broadcom shares were up about 6% since the start of 2026, while the S&P 500 was up 12% over the same period. The company's market value stands at roughly $1.8 trillion.

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