Broadcom's stock experienced a decline as investors were left unsatisfied by the chip maker's impressive earnings figures.
In the fiscal fourth quarter, the semiconductor company reported adjusted earnings per share of $11.06, surpassing the Wall Street consensus of $10.96. Moreover, the revenue for the quarter amounted to $9.3 billion, meeting expectations, according to FactSet.
Within this period, the semiconductor-solutions segment registered $7.3 billion in revenue, while the infrastructure software segment generated $2.0 billion.
Following the release on Thursday, Broadcom's stock dropped by as much as 2.3% to $901.15.
Additionally, Broadcom provided its fiscal 2024 guidance, projecting revenue of $50 billion. This projection includes its recent acquisition of VMware, which was finalized last month. While the consensus estimate for fiscal 2024 revenue was $39.2 billion, it remains uncertain whether VMware was included in these estimates.
Broadcom's wide range of semiconductors covers various categories such as networking, broadband, server storage, wireless, and industrial applications. Notably, some of its chips have exposure to generative artificial intelligence applications, which have been a sought-after investment theme this year.
CEO Hock Tan attributed Broadcom's successful results to investments in accelerators and network connectivity for AI by hyperscalers.
Year-to-date, Broadcom shares have increased by 65%, surpassing the 49% rise of the iShares Semiconductor exchange-traded fund (ticker: SOXX), tracking the performance of the ICE Semiconductor Index.
