- 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.
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.