Broadcom Slides 2.3% Premarket as Q4 Revenue Forecast Misses Lofty AI Expectations
AVGO sits 22% above its 52-week low of $289.96.
Summary
Broadcom shares fell 2.29% in premarket trading after its Q4 revenue forecast of $34.8B, while up 93% YoY, fell short of Wall Street's lofty expectations. This follows the Q3 earnings report filed yesterday showing revenue of $29.6B, up 86% YoY. The market is signaling that even strong AI-driven growth may not be enough to sustain the stock's valuation. Snowflake, also tagged, soared 23.76% on its own strong forecast, highlighting a divergence in AI-related names. Traders will watch whether the premarket decline holds into the regular session and how the broader AI trade reacts.
At the time of this announcement, AVGO was trading at $353.76 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.7T. The 52-week trading range was $289.96 to $495.00. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.