Shares of semiconductor giant Broadcom (NASDAQ: AVGO) got pummeled after the company’s last earnings report, dropping nearly 20% in two days. Possibly the biggest reason for the company’s large post-earnings decline was its decision not to raise its AI semiconductor revenue guidance.
In its fiscal year 2027, Broadcom continues to place its sales forecast at over $100 billion for this segment. However, there is a belief in the market that Broadcom’s AI semiconductor sales will be much higher than $100 billion. CEO Hock Tan himself alluded to this, saying in the company’s last earnings call, “2027 will exceed very easily $100 billion.”
