Broadcom fourth-quarter revenue falls short of expectations despite AI revenue rise

broadcom
(Image credit: Pixabay) (Image credit: Pixabay)

Broadcom just declared lower-than-anticipated projections for next-quarter revenue, estimating income of $14 billion compared with previous Wall Street predictions of $14.04 billion.

However, that’s not a bad thing, because if Broadcom does manage to draw in $14 billion in revenue, it would mark a 51% increase compared with the same period last year.

It would also represent greater growth than the quarter just closed, which saw a 47% year-over-year increase in revenue, which stood at $13.07 billion.

Broadcom revenue continues to climb

Company CEO Hock Tan commented: “Broadcom's third quarter results reflect continued strength in our AI semiconductor solutions and VMware.” The company expects around $12 billion of its fiscal year revenue to come from AI, accounting for nearly a quarter of the company’s revenue. This estimation marks a $1 billion increase compared with previous predictions.

Despite the positive outlook, the company continues to struggle with figures elsewhere. It reported a $1.88 billion net loss for the most recent three-month period.

Speaking about the company’s growth, Summit Insight senior research analyst Kinngai Chan stated (via Reuters): “We believe it's unreasonable for investors to expect Broadcom to post Nvidia-type results and outlook.”

Broadcom shares are up 75.2% over the past 12 months, however recent months have seen turbulence in its figures, not least due to some uncertainty surrounding the changes it has made to VMware. Tan added: “The transformation of VMware continues to progress very well.”

Moreover, a post-earnings conference call confirmed strong performance in the AI department, but considerable dips in other areas like broadband and non-AI networking.

More from TechRadar Pro

Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

Read more
broadcom
Trillion-dollar tech company emerges as key partner to help Google, Meta and other hyperscalers build an Nvidia-free AI future
Microsoft Copilot on a laptop.
Microsoft reveals massive financial growth once again, cloud and AI lead the way
Glowing server racks inside a data center.
The dirty little secret about AI hardware that you should know about: server vendors have to wrestle with wafer thin margins and bigger customers
Intel Logo
The end of an era? TSMC, Broadcom could tear apart Intel's legendary business after 57 years by separating its foundry and chip design
Data center racks with cables and servers
Spending on data centers hit a high in 2024, but it won't last
Digital clouds against a blue background.
GenAI development is pushing along cloud adoption at a record pace
Latest in Pro
Isometric demonstrating multi-factor authentication using a mobile device.
NCSC gets influencers to sing the praises of 2FA
Sam Altman and OpenAI
OpenAI is upping its bug bounty rewards as security worries rise
Context Windows
Why are AI context windows important?
BERT
What is BERT, and why should we care?
A person holding out their hand with a digital AI symbol.
AI is booming — but are businesses seeing real impact?
A stylized depiction of a padlocked WiFi symbol sitting in the centre of an interlocking vault.
Dangerous new CoffeeLoader malware executes on your GPU to get past security tools
Latest in News
Nintendo Switch 2 Joy-Con up-close from app store
Nintendo's new app gave us another look at the Switch 2, and there's something different with the Joy-Con
cheap Nintendo Switch game deals sales
Nintendo didn't anticipate that Mario Kart 8 Deluxe was 'going to be the juggernaut' for the Nintendo Switch when it was ported to the console, according to former employees
Three angles of the Apple MacBook Air 15-inch M4 laptop above a desk
Apple MacBook Air 15-inch (M4) review roundup – should you buy Apple's new lightweight laptop?
Witchbrook
Witchbrook, the life-sim I've been waiting years for, finally has a release window and it's sooner than you think
Amazon Echo Smart Speaker
Amazon is experimenting with renaming Echo speakers to Alexa speakers, and it's about time
Shigeru Miyamoto presents Nintendo Today app
Nintendo Today smartphone app is out now on iOS and Android devices – and here's what it does