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UPDATE 1-Broadcom misses revenue estimates on dull enterprise spending
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UPDATE 1-Broadcom misses revenue estimates on dull enterprise spending

Adds details about results, shares

- Chipmaker Broadcom AVGO.O missed Wall Street targets for fourth-quarter revenue on Thursday as weak enterprise spending and stiff competition in the chips space took a toll on its business.

Shares of the San Jose, California-based company, which recently closed its acquisition of cloud computing firm VMware, fell 2.2% in extended trading.

Broadcom finance chief Kirsten Spears had said in September that generative artificial spending was coming from large cloud service providers, and from enterprises yet.

The company had already seen revenue from telecom and enterprise clients moderate, and with major client Cisco Systems CSCO.O flagging slowdown in orders, analysts worry Broadcom will see the impact as well.

Competition from Nvidia NVDA.O, whose InfiniBand is being used as an alternative to Broadcom’s core offerings for AI, is an added pain.

Revenue in the fourth quarter was $9.30 billion. Analysts polled by LSEG expected revenue of $9.41 billion.


(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Maju Samuel)

((ArsheeyaSingh.Bajwa@thomsonreuters.com; +91 8510015800;))

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.
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