Broadcom’s quarterly revenue guidance tops estimates, stock seesaws after hours

Investing.com -- Broadcom (NASDAQ: AVGO) on Wednesday delivered a quarterly top- and bottom-line beat and provided current quarter revenue guidance that beat expectations.

Shares of the company whipsawed after hours, last flat.

Palo Alto, California-based Broadcom is a major player in the semiconductor and infrastructure software solutions industries. The company designs artificial intelligence chips, while its other semiconductor products span several markets such as networking connectivity, wireless devices, servers and storage systems, and broadband. Its infrastructure software solutions cater to areas such as private cloud, cybersecurity, and enterprise software.

Broadcom’s rivals include other chip designers such as Nvidia (NASDAQ: NVDA) and Qualcomm (NASDAQ: QCOM). Broadcom has gained significance as a viable alternative to Nvidia for hyperscale cloud providers such as Alphabet and Meta Platforms to make microchips known as application-specific integrated circuits (ASICs).

For fiscal Q1 2026, Broadcom earned $2.05 per share on an adjusted basis on revenue of $19.31 billion. Analysts had expected earnings of $2.02 per share on revenue of $19.21 billion.

The chip designer expects Q2 revenue to be about $22 billion, compared to a consensus estimate of $20.4 billion. Artificial intelligence semiconductor revenue is expected to be $10.7 billion.

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