Broadcom's AI Revenue Is on Pace to Triple to $16 Billion in a Single Quarter, but the Stock Just Dipped 17%. Is This an Opportunity to Buy the Dip?
Accelerating AI chip demand may give this top chip stock a second wind.
Broadcom's AI Revenue Is on Pace to Triple to $16 Billion in a Single Quarter, but the Stock Just Dipped 17%. Is This an Opportunity to Buy the Dip?
Overview
Broadcom (NASDAQ: AVGO) shares recently sold off after the company reported a sharp acceleration in revenue growth. The stock has started to recover, but is still down 17% from its previous high at the time of writing.
Investors might have been looking for stronger revenue guidance for the rest of the year, but it's still puzzling that the stock fell this sharply. Management guided for another massive jump in AI chip revenue next quarter and provided a positive outlook for its AI semiconductor business over the next few years. Here's why this looks like a great setup for a buying opportunity.
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Originally published at www.fool.com.
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