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FinanceBroadcom drops 5% after hours as Q4 revenue forecast of $34.8B misses estimates, despite Q3 beat
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Broadcom shares fell 5% in extended trading on Wednesday after the chipmaker issued a disappointing revenue forecast for the current quarter, despite beating fiscal third-quarter earnings estimates. The company reported adjusted earnings per share of $3.32 versus the expected $3.24, and revenue of $29.59 billion against the $29.36 billion consensus. However, for the fiscal fourth quarter, Broadcom forecast revenue of $34.8 billion, below analyst expectations of $35.03 billion. Broadcom has been a major beneficiary of the artificial intelligence boom, designing custom chips for Google, Meta, and OpenAI, and its stock has surged more than sixfold since the end of 2022. The company highlighted its custom Jalapeno chip developed with OpenAI and noted that Apple plans to increase spending with Broadcom for U.S. chip production. Despite these positives, Broadcom shares have underperformed the broader market in 2026, gaining only about 6% compared to the S&P 500's 12% rise.
Source report
Broadcom CEO Hock Tan speaks at the Bloomberg Tech conference in San Francisco on June 4, 2026. David Paul Morris | Bloomberg | Getty Images
Broadcom shares dropped 5% in extended trading on Wednesday after the chipmaker issued disappointing guidance for the current quarter, despite reporting fiscal third-quarter results that topped analysts' estimates.
Key Financial Results vs. LSEG Consensus
- Earnings per share: $3.32 adjusted vs. $3.24 expected
- Revenue: $29.59 billion vs. $29.36 billion expected
Guidance Miss
For the fiscal fourth quarter, Broadcom said it expects revenue of $34.8 billion, while analysts were expecting $35.03 billion, according to LSEG.
Market Context
Broadcom has been one of the major winners of the artificial intelligence boom, designing custom chips for companies including Google, Meta, and OpenAI. The stock has jumped by more than sixfold since the end of 2022, coinciding with the emergence of ChatGPT and other generative AI services, pushing its market cap to about $1.8 trillion.
However, the shares have lagged the broader indexes this year. As of Wednesday's close, Broadcom shares had gained about 6% in 2026, while the S&P 500 index is up 12% in the same period.
Recent Developments
During the quarter, Broadcom touted the custom Jalapeno chip it developed with OpenAI, while Apple said it would spend more with Broadcom for U.S. chip production.
Upcoming
Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.
This is breaking news. Check back for updates.
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Part of this Story
Broadcom stock falls 5% on weak Q4 revenue forecast despite earnings beat and record AI chip sales