Broadcom's AI Revenue Just Jumped 143%. So Why Is the Stock Sliding?
Broadcom stock has dipped 22% over the past month.
Overview
Along with Nvidia, Broadcom (NASDAQ: AVGO) has probably been one of the absolute best AI stocks over the past several years.
The leading manufacturer of semiconductor chips for communications networks just had blowout results in its fiscal second quarter. Overall revenue surged 48% year over year to a record $22.8 billion. Net income rose 88% to $9.3 billion, and adjusted earnings climbed 54% to $2.44 per share, beating estimates.
Details
The main driver of revenue has been AI. In the quarter ended May 3, semiconductor revenue from AI rose 143% year over year to $10.8 billion, exceeding its forecast. CEO Hock Tan said the AI revenue gains were fueled by increasing demand for custom AI accelerators and AI networking.
Source
Originally published at www.fool.com.