There Are 16 Billion Reasons to Pay Attention to Broadcom Earnings on Sept. 2
Broadcom's revenue and profits are growing fast, but investors have mostly stayed away.
Overview
Broadcom (NASDAQ:AVGO) has been a disappointment for investors so far this year -- the stock is up 6%, but that's only half the performance of the S&P 500, which is up 12% year to date.
However, the semiconductor maker is reporting earnings for its fiscal third quarter after the market close on Sept. 2. And as management previously issued guidance for AI semiconductor revenue to grow more than 200% from a year ago to reach $16 billion, there are plenty of reasons for investors to be paying close attention to Broadcom stock this week.
Details
Broadcom is a chipmaker, but it operates in a different lane from Advanced Micro Devices and Nvidia. It designs chips known as application-specific integrated circuits (ASICs) that are customized for Broadcom's customers, so while they aren't as versatile as Nvidia's top-of-the-line chips, they perform the functions its customers require so that they can be made less expensively.
Source
Originally published at www.fool.com.