Broadcom's post-earnings pullback doesn't shift the fundamentals. It's a buying opportunity

Semiconductor firm Broadcom reported better-than-expected fiscal third-quarter results Thursday, even as the stock came under pressure due to a miss on cash flow and in-line guidance. But we're unconcerned about the pullback and see this newest Club holding as clear beneficiary of the artificial-intelligence craze, with more room to run. Revenue for the three months ended July 30 increased 5% year-over-year, to $8.88 billion, exceeding analysts' forecasts of $8.

On the hyperscale front, Broadcom CEO Hock Tan attributed the strength to generative-AI initiatives, noting that the company supplies a "major hyperscale customer with custom AI compute engines." That customer is almost certainly fellow Club name Alphabet , which collaborates with Broadcom on on the design and manufacture of Google Tensor Processing Units . Tan also said that sales related to generative AI are responsible for essentially all growth seen in the semiconductor business.

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Inflation data, Broadcom earnings, Lululemon: 3 things to watch By Investing.comInflation data, Broadcom earnings, Lululemon: 3 things to watch
Source: Investingcom - 🏆 450. / 53 Read more »

Broadcom has a tough act to follow after Nvidia earningsBroadcom has a high bar to clear Thursday as the chip and software company reports on the progress of its AI initiatives.
Source: MarketWatch - 🏆 3. / 97 Read more »

Broadcom stock slips after earnings as forecast fails to bring upsideThe chip company beat expectations on adjusted profit for latest quarter, while delivering largely in-line revenue.
Source: MarketWatch - 🏆 3. / 97 Read more »

Broadcom Earnings Edge Estimates. The Stock Slips.The chip maker sees promise in the artificial intelligence trend.
Source: MarketWatch - 🏆 3. / 97 Read more »