Broadcom’s (AVGO) stock is down 1% despite the microchip and semiconductor company issuing strong fourth quarter 2023 results as its forward guidance failed to impress Wall Street.
The Silicon Valley-based company reported earnings per share (EPS) of $10.99 U.S. for what was its fiscal first quarter, beating Wall Street estimates of $10.40 U.S. a share.
Revenue in the quarter totaled $11.96 billion U.S., which was also above estimates of $11.80 billion U.S.
However, Broadcom provided full-year revenue guidance of $50 billion U.S., which is inline with Wall Street forecasts, and analysts apparently wanted to see more from the company moving forward.
Broadcom reported fiscal Q1 revenue from its semiconductor-solutions segment of $7.39 billion U.S., while its infrastructure software segment generated $4.57 billion U.S. in sales.
On an earnings call with analysts and media, Broadcom’s management team reiterated that they continue to see strong demand for their chips in artificial intelligence (A.I.) data centres.
Broadcom’s semiconductors are used in several different economic sectors, including networking, broadband, server storage, wireless, and industrial.
Prior to today (March 8), Broadcom’s stock had increase 123% over the last 12 months to trade at $1,407.01 U.S. per share.
