Broadcom Stock Falls After Profits Miss Street Estimates
Shares of Broadcom fell Friday after the chip and software company late yesterday reported quarterly profits that missed Wall Street forecasts on deal-related costs.
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In afternoon trading:
Stocks advanced, then lost steam. The S&P 500 fell after it hit another new record high Thursday. The Dow and Nasdaq are on track to post modest weekly losses.#stockmarkets pic.twitter.com/nZlGFccdZn— The_Journalbiz (@the_journalbiz) March 8, 2024
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Strong demand for AI-related products boosted semiconductor sales at Broadcom, which said sales for its fiscal first quarter were $11.96 billion, up by 34% year-over-year because it acquired software maker VMware.
Broadcom’s shares were recently down about 7%.
Chief Executive Hock Tan said AI chip sales would bring in over $10 billion this fiscal year and makeup more than a third of the company’s overall semiconductor sales.
The company didn’t give an outlook for the current quarter but reiterated an earlier forecast of around $50 billion of sales in its fiscal year.
JetBlue shares rose 3 % in midday trading, while Spirit tumbled 15%.
