Broadcom Drops 3.45% Despite Strong Q2 Earnings

On June 6, 2025, Broadcom's stock experienced a 3.45% drop in pre-market trading.
Broadcom, a key player in the AI hardware ecosystem, has reported a strong second quarter with revenue of $150 billion, slightly exceeding analyst expectations of $149.6 billion. The company's adjusted earnings per share were $1.58, surpassing the $1.56 expected by analysts. This performance was driven by a 16.7% increase in revenue from its semiconductor solutions for data centers and networks, reaching $84.1 billion. The company's AI semiconductor revenue grew by 46%, while traditional semiconductor revenue declined by 5%.
Looking ahead, Broadcom has forecasted third-quarter revenue of $158 billion, with AI semiconductor revenue expected to reach $51 billion, marking ten consecutive quarters of growth. The company's infrastructure software business is also expected to grow, with revenue projected at $67 billion. However, the stock's decline in pre-market trading suggests that investors may have been expecting more from the company's performance.

Comments
No comments yet