5 months ago
74
(Reuters) – Chipmaker Broadcom missed Wall Street targets for fourth-quarter revenue on Thursday as weak enterprise spending and stiff competition in the networking 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 not from enterprises yet.
The company had already seen revenue from telecom and enterprise clients moderate, and with major client Cisco Systems flagging slowdown in new orders, analysts worry Broadcom will see the impact as well.
Competition from Nvidia, 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)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.
