Broadcom shares drop as revenue forecast fails to impress
The Palo Alto, California-based company, which supplies semiconductors to Apple and Samsung, provides advanced networking gear that allows vast amounts of data to travel across AI data centers, making its chips crucial for the development of generative AI technology. Broadcom forecast third-quarter revenue of around $15.80 billion, compared with analysts' average estimate of $15.71 billion, according to data compiled by LSEG. Broadcom also helps design custom AI processors for large cloud providers, which compete against Nvidia's pricey off-the-shelf chips.