Broadcom forecasts Q1 revenue above estimates on strong AI chip demand
Published On Dec 13, 2024, 4:13 AM
Broadcom has forecasted first-quarter revenues of approximately $14.6 billion, slightly above Wall Street's expectations of $14.57 billion. The company's optimistic outlook is driven by increased demand for its custom AI chips, particularly from large tech firms seeking alternatives to Nvidia's AI processors. The CEO estimates a potential revenue opportunity from AI ranging between $60 billion and $90 billion by fiscal 2027, with several large customers set to deploy millions of AI chip clusters. However, Broadcom faces competition from Nvidia and potential revenue loss as Apple moves towards designing more of its own chips.
Stock Forecasts
AVGO
Positive
Broadcom's strong demand for AI chips positions it well in the semiconductor market, benefiting from the ongoing AI revolution. The company's revenue growth in this segment could significantly increase its long-term value, notwithstanding the competition from Nvidia and potential losses from Apple.
Related News
Dow futures are little changed after index posts longest losing streak since April: Live updates
Dec 12, 2024, 6:03 PM
The Dow Jones Industrial Average dropped for a sixth consecutive day, notching its longest losing streak since April.
Stock market today: Nasdaq heads for record close as investors await Alphabet earnings
Oct 29, 2024, 3:00 PM
Investors absorbed a fresh rush of earnings and waited for Alphabet to lead in the week's Big Tech results.
Stock market today: Dow, Nasdaq rise as Nvidia and chip stocks jump
Oct 17, 2024, 4:02 PM
A monthly report on retail sales could provide clues to whether the Fed will go for "no cut" at its next meeting.