Broadcom (AVGO) reported strong results for its second fiscal quarter, setting a new record for revenue and exceeding earnings expectations. EPS rose over 40%, reflecting continued operational strength. AI-related revenue grew by 46%, which remains solid but marks a notable deceleration from the previous quarter’s 77% increase. Looking ahead, Broadcom expects AI chip revenue to rise again in Q3—to $5.1 billion—which would mark the 10th consecutive quarter of AI chip revenue growth. However, this projection came in about 3.7% below the more optimistic analyst estimates, contributing to a dip in investor sentiment. The stock closed at $246.93 last week, down 5% on the day. Why I’m Staying on the Sidelines Broadcom is a fundamentally sound company, but despite the impressive numbers, I’m not
Record Revenue, Slowing AI: Still Worth Chasing AVGO After Earnings?
Broadcom's revenue for the second fiscal quarter hit a record high, with EPS continuing to grow by over 40%, beating expectations. AI revenue for the quarter rose by 46%, marking a noticeable slowdown from the previous quarter's 77% growth. Broadcom expects its AI chip revenue to increase for a tenth consecutive quarter in Q3, accelerating to $5.1 billion—but still 3.7% below some analysts' higher estimates. AVGO fell 4% in the overnight trading. The stock is still at highs as it set all time high yesterday. ---------- Is it worth chasing at a high level? Or wait for a fair price?
+ Follow
+1