Broadcom Stock Slides 5% on Soft Fourth-Quarter Revenue Outlook

Broadcom shares fell 5% during after-hours trading on Wednesday following the release of a lighter-than-expected revenue forecast for its upcoming quarter, dampening market enthusiasm over strong quarterly profit growth. As reported by CNBC Business, the semiconductor giant projected fourth-quarter revenue of $34.8 billion, trailing behind Wall Street projections of $35.03 billion compiled by LSEG.

The softer outlook overshadowed a robust financial performance in the recently completed fiscal third quarter. Revenue surged 86% year-over-year compared to $15.95 billion recorded in the same period a year prior, while net income more than tripled to reach $13.09 billion, or $2.68 per share, up from $4.14 billion, or 85 cents per share, in the prior-year period.

Segments within the enterprise business showed mixed results against consensus targets. Broadcom generated $8.75 billion in revenue from its infrastructure software unit during the quarter, slightly missing the $8.82 billion figure anticipated by analysts surveyed by StreetAccount.

Broadcom has positioned itself as a primary supplier in the expanding artificial intelligence ecosystem, manufacturing customized silicon for major technology platforms such as Meta, Google, and OpenAI. Driven by demand stemming from generative AI tools like ChatGPT, Broadcom's share price has expanded more than sixfold since late 2022, elevating its total market valuation to approximately $1.8 trillion.

Despite its dramatic multi-year trajectory, the company's equity performance has trailed broader market benchmarks so far in 2026. As of Wednesday's closing bell, Broadcom shares had advanced roughly 6% for the year, compared to a 12% gain for the S&P 500 index over the same timeframe.

During the third quarter, Broadcom highlighted significant ongoing enterprise partnerships, including its development of a custom processor codenamed Jalapeno alongside OpenAI. Additionally, consumer hardware manufacturer Apple indicated plans to increase its capital commitment with Broadcom for domestic chip manufacturing.

Executive leadership is scheduled to address financial analysts and provide additional operational context during an earnings call set for 5 p.m. Eastern Time.