The AI chip giant topped third-quarter expectations and nearly doubled revenue, but weaker-than-expected guidance pressured shares after hours.
Broadcom (AVGO) shares fell roughly 5% in extended trading Wednesday after the semiconductor giant issued a weaker-than-expected revenue outlook, overshadowing fiscal third-quarter results that exceeded Wall Street expectations.
Broadcom reported adjusted earnings of $3.32 per share, beating the $3.24 consensus estimate. Revenue reached $29.59 billion, slightly ahead of the $29.36 billion analysts expected and up 86% from $15.95 billion a year earlier.
Profit growth was even stronger. Net income more than tripled to $13.09 billion, or $2.68 per share, compared with $4.14 billion, or $0.85 per share, in the year-ago quarter.
However, investors focused on the company’s fourth-quarter outlook. Broadcom expects revenue of approximately $34.8 billion, below Wall Street’s $35.03 billion consensus forecast.
Infrastructure software revenue also came in slightly light at $8.75 billion, compared with expectations of $8.82 billion.
Despite the market’s reaction, Broadcom remains one of the biggest beneficiaries of the artificial intelligence infrastructure boom. The company designs custom AI accelerators for major technology companies including Google, Meta and OpenAI.
During the quarter, Broadcom highlighted its custom “Jalapeno” AI chip developed with OpenAI. Apple also recently announced plans to increase spending with Broadcom for U.S.-based chip production.
Broadcom’s valuation has surged alongside AI investment, with shares rising more than sixfold since the end of 2022 and pushing the company’s market capitalization to approximately $1.8 trillion.
However, the stock has gained only about 6% in 2026, trailing the S&P 500’s roughly 12% advance.
The latest results suggest Broadcom’s AI-driven growth remains substantial, but elevated investor expectations leave little room for guidance that falls short of Wall Street forecasts.
