Broadcom slips as Q4 revenue outlook below estimates
AVGO•Long-term AI chip revenue forecast raised
The company now expects AI chip revenue of about $115 billion in fiscal 2027, up from over $100 billion, and sees that doubling to roughly $230 billion in fiscal 2028, citing strong customer demand.
"We see the guidance as credible and believe underlying AI infrastructure demand will continue rising through 2030," Morningstar analysts said.
Fourth-quarter revenue outlook and analyst view
AVGO expects fourth-quarter revenue of about $34.8 billion, compared with analysts' average estimate of $35.03 billion, according to data compiled by LSEG.
Forty-seven analysts rate the stock "buy" on average; the median price target is $525, according to data compiled by LSEG.
As of the last close, the stock was up 6.1% year to date.
Shares slip after revenue outlook misses estimates
Broadcom's AVGO.O shares were down 2.2% to $359.36 in premarket trading.
The company raised its long-term AI chip revenue forecast but provided a fourth-quarter revenue outlook below estimates.
