$Broadcom(AVGO.US) (-6.7% after hours) reported 2Q earnings ahead of expectations and 3Q rev guidance above expectations but 3Q guidance for AI semiconductor solutions was slightly below expectations. With $Broadcom(AVGO.US) stock up +13% in the past five trading sessions (vs NDX +2%), it would be reasonable for AVGO to retreat after today’s 2Q results and soft 3Q guidance.
2Q actual- Rev $22.19B vs $22.13B est- EBITDA $15.24B vs $14.96B est- EPS $2.44 vs $2.39 est- AI Semi solutions $7.18B vs $7.23B est3Q guidance- Rev $29.4B vs $28.6B est- EBITDA $20.0B inline with $20.0B est- AI Semi solutions to grow +200% to $16.2B vs $17.2B expStock was pricing in a healthy 3Q guidance beat especially on its AI semiconductor solutions business. With results slightly below expectations, and the stock’s rally of +13% over the past 5 sessions, a fair conclusion is that AVAGO’s 3Q outlook likely disappointed investors who were hoping for blowout guidance.The copyright of this article belongs to the original author/organization.
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