Broadcom issues upbeat outlook on AI demand despite softer revenue guidance

Broadcom reported thirdquarter results that beat Wall Street expectations and outlined plans for continued growth tied to artificial intelligence customers, including OpenAI, Google, Anthropic, and Meta. The company also gave a fourthquarter revenue forecast that came in slightly below analysts' estimates. For the fiscal third quarter, Broadcom said adjusted earnings were $3.32 per share on revenue of $29.59 billion, both ahead of consensus forecasts. Net income rose sharply from a year earlier, and semiconductor revenue more than tripled to $16.7 billion. Chief Executive Hock Tan said Broadcom expects faster shipments of custom AI chips and sees tens of billions of dollars in annual processor deliveries to Google over the next several years. The company also said it is working with AI labs on additional chip generations and may provide contingent value guarantees linked to their investments. Shares rose slightly in afterhours trading after the report.