By Tae Kim
Broadcom stock fell after the chip maker’s solid earnings results failed to satisfy investors.
On Thursday, the semiconductor company reported adjusted earnings per share of $10.99 for the fiscal first quarter, topping the Wall Street consensus for $10.40 a share. Revenue came in at $11.96 billion, above expectations of $11.8 billion, according to FactSet.
Broadcom also gave full-year revenue guidance of $50 billion, which is roughly inline with the Street consensus of $49.8 billion.
The chip maker’s stock traded down 3% shortly after the release Thursday.
This is breaking news. Read a preview of Broadcom earnings below and check back for more analysis soon.
Chip investors are eager to hear the latest commentary from Broadcom about progress in its AI semiconductor business.
Wall Street consensus estimates are for the company to report January quarter revenue of $11.8 billion with adjusted earnings per share of $10.40. Analyst estimates for the current quarter are for $12.3 billion in revenue and $11.11 in adjusted EPS.
Earlier this week, J.P. Morgan analyst Harlan Sur reiterated his Overweight rating and reaffirmed his $1,550 price target for the shares.
“We believe Broadcom is a leader in wireless, datacenter networking, AI/deep learning ASICs, storage, and infrastructure silicon/hardware/software,” he wrote.
Sur estimates Broadcom will generate $8 billion to $9 billion in AI chip revenue for fiscal 2024.
On Wednesday, Broadcom stock rose 0.5% to $1,350.
Broadcom shares are up 113% over the past 12 months, compared with the 66% rise for the iShares Semiconductor ETF, which tracks the performance of the ICE Semiconductor Index.
Write to Tae Kim at tae.kim@barrons.com