Broadcom shares dip as investors eye reiterated full-year forecast By
Summary
Investing.com -- Shares in Broadcom (NASDAQ: ) dipped in premarket U.S. trading on Friday, as investors noted that the semiconductor group did not raise its full-year guidance target despite posting better-than-expected fiscal first-quarter results. The firm produces networking chips for data centers -- an area in which many large tech businesses are investing heavily in a bid to support the development of their AI capabilities. In the three months ended on Feb. 4, AI revenue quadrupled versus the year-ago period to $2.3 billion, Broadcom Chief Executive Hock Tan said in a post-earnings call with analysts on Thursday. However, demand at Broadcoms service storage and broadband unit has been "weaker than expected," Tan flagged, due in particular to a cyclical pullback in spending by telecoms and enterprise clients. Wall Street estimates had called for a marginally improved forecast of around $50.2 billion Meanwhile, the company credited its acquisition of tech group VMware for fueling growth at its infrastructure software unit.
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