Broadcom shares under pressure despite solid AI forecasts

Los Angeles. Strong numbers and an optimistic outlook aren't enough for Broadcom investors on Thursday. According to traders, it is becoming increasingly difficult for companies with AI imagination to maintain the euphoria. The market was hoping for even stronger signals regarding sales development.

A stock exchange expert emphasized that the result in the third quarter was slightly above expectations. The forecast for the final quarter roughly corresponds to the estimates, but this apparently does not impress investors strongly enough. They were already prepared for even stronger short-term results, the market participant argued. The goals seemed solid, but less convincing than those of larger competitor Nvidia last week. Its price was just slightly positive on Thursday before the market.

It didn't lift spirits that Broadcom expects another boom within two years - fueling hopes that Nvidia might be able to challenge it in a lucrative market. For the current fiscal year, the AI ​​chip target was increased slightly to $58 billion. In the following fiscal year, revenue from AI-related products is expected to increase to $115 billion and then reach $230 billion in 2028.