Key facts
- Broadcom forecasts fourth-quarter revenue to be approximately $34.8 billion.
- Analysts' average estimate for Broadcom's fourth-quarter revenue was $35.03 billion.
- The company's outlook indicates that competition may impede progress from its custom processors.
Broadcom projected fourth-quarter revenue below Wall Street estimates on Wednesday, indicating that intense competition could hinder gains from its custom processors. The company expects revenue of approximately $34.8 billion, compared with analysts' average estimate of $35.03 billion. Broadcom has established itself as a significant player in the AI sector, developing custom chips for major cloud providers like Meta and Alphabet's Google as an alternative to Nvidia's processors. The company's CEO, Hock Tan, stated that semiconductor revenue from AI is expected to grow over 200 percent year-over-year to $16.0 billion in Q3. In the second quarter, revenue rose 48 percent to $22.19 billion, slightly missing estimates, while adjusted profit of $2.44 per share trailed estimates of $2.40.