Broadcom posts 221% jump in AI chip revenue as shares slide after Q3 results
Broadcom reported strong third-quarter results, with EPS up 96% and revenue up 86%, including a 221% year-over-year surge in AI semiconductor revenue. Its infrastructure software business grew 30% over the same period. For the fourth quarter, management guided for $34.8 billion in revenue and $21.7 billion in AI semiconductor revenue, while targeting a 66% adjusted EBITDA margin. Despite the beat, the stock fell in after-hours trading, even as its forward P/E is described as attractive.