Broadcom just declared lower-than-anticipated projections for next-quarter revenue, estimating income of $14 billion compared with previous Wall Street predictions of $14.04 billion.
However, that’s not a bad thing, because if Broadcom does manage to draw in $14 billion in revenue, it would mark a 51% increase compared with the same period last year.
It would also represent greater growth than the quarter just closed, which saw a 47% year-over-year increase in revenue, which stood at $13.07 billion.
Broadcom revenue continues to climb
Company CEO Hock Tan commented: “Broadcom's third quarter results reflect continued strength in our AI semiconductor solutions and VMware.” The company expects around $12 billion of its fiscal year revenue to come from AI, accounting for nearly a quarter of the company’s revenue. This estimation marks a $1 billion increase compared with previous predictions.
Despite the positive outlook, the company continues to struggle with figures elsewhere. It reported a $1.88 billion net loss for the most recent three-month period.
Speaking about the company’s growth, Summit Insight senior research analyst Kinngai Chan stated (via Reuters): “We believe it's unreasonable for investors to expect Broadcom to post Nvidia-type results and outlook.”
Broadcom shares are up 75.2% over the past 12 months, however recent months have seen turbulence in its figures, not least due to some uncertainty surrounding the changes it has made to VMware. Tan added: “The transformation of VMware continues to progress very well.”
Moreover, a post-earnings conference call confirmed strong performance in the AI department, but considerable dips in other areas like broadband and non-AI networking.
More from TechRadar Pro
- These are the best AI writers
- Need to upgrade your own setup? Here are the best processors
- VMware revenues appear to plummet, but Broadcom says everything is fine
