Broadcom Shares Fall Despite Better-Than-Expected Earnings

The Silicon Valley chipmaker provided a better-than-expected revenue outlook, though it fell short of some higher analyst expectations.

A smartphone with a displayed Broadcom logo is placed on a computer motherboard in an illustration taken on March 6, 2023. Dado Ruvic/Illustration/Reuters

Broadcom Inc., whose shares are trading just below a new all-time high, narrowly beat Wall Street expectations on June 5 after the Silicon Valley chipmaker and AI infrastructure giant reported its fiscal second-quarter earnings following the market’s close in New York.

For the period ended May 4, the Palo Alto, California-based company reported earnings of $4.9 billion, or $1.03 per share, up 134 percent from $2.1 billion, or 44 cents per share, in the same quarter of fiscal 2024. Revenue rose 20 percent to $15 billion, compared with $12.4 billion a year earlier.