Broadcom Stock Slides Despite $230B AI Chip Forecast
Broadcom raised its AI semiconductor revenue forecast to about $115 billion for fiscal 2027 and $230 billion for fiscal 2028, extending the strong growth outlook for custom AI chips and networking. The company reported fiscal third-quarter revenue of $29.59 billion, up 86% year on year, while adjusted earnings reached $3.32 per share. AI semiconductor revenue surged 221% to $16.7 billion, compared with $10.8 billion in the previous quarter. AI networking represented nearly 40% of AI revenue in the earlier quarter.
Broadcom expects fourth-quarter AI semiconductor revenue to reach $21.7 billion, up 236% year on year. Its overall revenue forecast of about $34.8 billion was slightly below the $35.03 billion analyst consensus. The company also reported more than $30 billion in quarterly AI bookings, $8.75 billion in infrastructure software revenue and $13.7 billion in free cash flow. CEO Hock Tan said committed AI capacity exceeds 10 gigawatts for Anthropic, 5 GW for OpenAI and 3 GW for Meta.
Broadcom stock closed at $367.24, down 0.66%, and fell to about $364.23 in after-hours trading. The reaction highlights concerns over valuation, near-term guidance and competition in custom AI chips, including Marvell’s agreement with Google. For traders, Broadcom remains a key indicator of hyperscaler AI infrastructure spending. The main risk is whether Broadcom can convert its large AI order pipeline into earnings quickly enough to support elevated expectations. The results may indirectly influence sentiment across semiconductors, cloud infrastructure and crypto-related technology stocks, but they do not provide a direct signal for cryptocurrency prices.
Neutral
The news has no direct fundamental impact on any cryptocurrency because no specific cryptoasset or token is discussed. Broadcom’s strong AI revenue, rising bookings and higher long-term forecast could support risk appetite across technology markets, which may provide an indirect short-term positive backdrop for crypto during periods of strong correlation between digital assets and growth stocks. However, the weaker-than-expected overall revenue guidance, high valuation and after-hours stock decline show that investors are focused on execution risk and potentially stretched expectations.
In the short term, the mixed reaction is more likely to produce neutral or limited spillover into crypto markets than a sustained directional move. A broader sell-off in semiconductor or AI stocks could weigh on crypto through reduced risk appetite, while continued investment in data-centre infrastructure could support technology sentiment. Over the longer term, Broadcom’s AI expansion may reinforce demand for data-centre power, networking and computing infrastructure, but this does not directly change cryptocurrency adoption, network activity or token fundamentals. Therefore, the expected impact on the mentioned cryptocurrency market is neutral.