Broadcom Gives Downbeat Forecast, Signaling Sluggish Chip Demand
- AI boom is benefiting company, but not at same scale as Nvidia
- Broadcom is contending with slower demand for smartphones
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Broadcom Inc., a supplier of chips to Apple Inc. and a broad swath of the tech industry, suffered its worst stock decline in four months after giving a disappointing forecast for the current period, signaling that demand remains sluggish for electronic components.
Revenue will be about $9.27 billion in the fiscal fourth quarter, the company said Thursday in a statement. That compares with an average Wall Street estimate of $9.28 billion, with some analysts predicting as much as $9.8 billion. The projected gain would be the slowest since 2020.