Chip giant Broadcom will report its fiscal third-quarter earnings after the bell on Wednesday, with revenue forecast at $29.24 billion. AI chip sales are projected to hit $16 billion, or 54% of total revenue, up from 49% in the prior quarter, including the first custom processor for OpenAI. The company expects operating margin to hold steady at 67 cents per dollar of sales, while revenue is set to climb 84% year-over-year. Analyst estimates, however, come in slightly below the company's guidance, and data shows institutional funds are accelerating outflows from Broadcom and other AI chip firms. Broadcom's stock has gained 7% year-to-date but still trades 23% below its June record high. The market will watch for whether the stock can break key resistance levels after earnings. Wall Street rates the stock a "Strong Buy," with 25 buy and 3 hold ratings. (BeInCrypto)
Broadcom reports fiscal third-quarter earnings after the bell on Wednesday, and investors are locked in on the company's AI chip business. By the company's own guidance and analyst forecasts, the chipmaker is expected to post roughly $29.24 billion in revenue for the quarter. AI chip sales are seen hitting $16 billion, or 54% of total revenue, up from 49% in the prior quarter. That figure includes the first custom processor Broadcom made for OpenAI.
Broadcom has told investors its operating margin will stay where it was in the prior quarter, producing 67 cents of profit for every dollar of sales, even with revenue expected to jump 84% year-over-year. But analyst estimates sit a bit below the company's own guidance. And the data shows institutional funds have been speeding up outflows from Broadcom and other AI chip companies in recent weeks.
Broadcom's stock is up 7% year-to-date, though it still sits 23% below the all-time high it set in June. After the earnings release, the market will be watching closely to see whether the stock can clear key resistance levels. Wall Street now rates the stock a "Strong Buy," with 25 buy ratings and 3 hold ratings. (BeInCrypto)
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