Key Takeaways
- Broadcom exceeded Q4 earnings expectations with record revenue and strong AI-related sales.
- Despite the earnings beat and positive AI momentum, Broadcom shares declined in premarket trading.
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Shares of Broadcom Inc. (AVGO) slid in premarket trading on Friday despite the company posting strong quarterly financial results. The stock fell about 5% following a mild dip at market close on Thursday, according to Yahoo Finance.
The tech giant reported record Q4 fiscal 2025 revenue of over $18 billion, led by AI-driven semiconductor growth and a 26% rise in infrastructure software revenue.
Broadcom projects Q1 2026 revenue of $19.1 billion, with AI revenue expected to double year-over-year to $8.2 billion, supported by a $73 billion backlog.
The stock declined after management chose not to update its prior guidance of 40%-60% AI revenue growth for fiscal year 2026. Analysts noted that the decision disappointed stakeholders, despite signs of accelerating AI-driven revenue growth.
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