Broadcom Falls After Lukewarm Forecast Disappoints AI Bulls

Shares of Broadcom Inc., a chip supplier to companies like Alphabet Inc. and Apple Inc., fell after the company gave a lackluster revenue forecast for the current quarter, suggesting that the AI spending frenzy isn’t as strong as some investors anticipated.

Sales will be about $15.8 billion in the fiscal third quarter, which ends Aug. 3, the company said in a statement Thursday. Though analysts had estimated $15.7 billion on average, some projections ranged $1 billion higher than that figure, according to data compiled by Bloomberg.