Broadcom Inc. shares tumbled more than 12% in extended trading Thursday after the chipmaker reported second-quarter revenue that missed Wall Street expectations. Earnings per share of $2.44 edged past the consensus estimate of $2.40, but revenue of $22.19 billion fell short of the $22.27 billion analysts had forecast.
CEO Hock Tan declined to raise the company's full-year AI chip sales guidance beyond the current $100 billion forecast, disappointing investors who had hoped for an increase following several quarters of upward revisions.
AI revenue doubled from a year ago to $10.8 billion, and the company expects that to grow to around $16 billion in the current quarter. Broadcom now counts six custom chip customers, including Anthropic, OpenAI, Google, and Meta Platforms.
Despite the miss, Broadcom stock remains up approximately 38% year-to-date, and has risen ninefold since the end of 2022 driven by surging demand for custom AI processors.
Net income rose to $9.31 billion from $4.96 billion a year earlier. For the current quarter, Broadcom forecast sales of approximately $29.4 billion, above the Street's estimate of $28.53 billion.