Broadcom Drops Post-Earnings Despite Raised AI Guidance — SkimNews
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- Broadcom (AVGO) fell the day after posting fiscal Q3 revenue of $29.6B and EPS of $3.32, both topping analyst estimates, with semiconductor revenue jumping 221% annually to $16.7B.
- Broadcom raised its AI semiconductor revenue guidance to $115B for FY2027 and $230B for FY2028, citing Ethernet products and OpenAI shipments alongside partnerships with most major tech firms on AI accelerators.
- Broadcom's Q4 revenue guide of $34.8B missed consensus of $35.03B, and its Q4 AI semiconductor revenue pencils in 30% sequential growth — a deceleration from Q3's 54%.
- Broadcom is also absorbing margin compression from its VMware acquisition, compounding worries that growth is peaking despite the raised long-range AI forecast.
- Jim Cramer flagged volume expanding sharply on Broadcom shares in morning trading well below the prior night's after-hours levels, warning followers 'be careful: someone must know something.'
- By contrast, Snowflake (SNOW) soared 21% post-earnings, with its Cortex AI CoCo agent adding 2,000+ clients and reaching 60% account adoption, though the firm reported a $192M Q2 net loss and a 15% non-GAAP operating margin versus MongoDB's 24%.
Why it matters: Broadcom beat estimates and raised the most-watched line item — AI chip revenue — yet the stock fell, because Q4 revenue missed by roughly $230M and AI sequential growth is decelerating from 54% to 30%. For investors, the lesson is that 'beat-and-raise' no longer clears the bar when the raise slows and the next quarter undershoots consensus, even with $115B–$230B in multi-year AI commitments on the table.
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