Broadcom Suffers Worst Stock Drop Since 2020 on Slow Chip Sales
- Semiconductor revenue comes in below analysts’ estimates
- Slower segments such as telecommunications weighed on sales
A Broadcom Inc. microchip on a personal computer.
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Broadcom Inc., a chip supplier for Apple Inc. and other big tech companies, suffered its worst stock decline in four years after reporting disappointing revenue from its semiconductor business, even as AI demand grew faster than expected.
The company’s semiconductor division posted revenue of $7.39 billion in the fiscal first quarter, Broadcom said Thursday, missing the $7.7 billion projected by analysts. Still, the chipmaker remains on track for $50 billion in sales during fiscal 2024, which ends in October. That’s in line with its previous forecast.