"However, following the company's fiscal fourth-quarter earnings report, its shares have declined sharply. The day after it hit its peak - which beat expectations on revenue and earnings per share - the stock fell more than 11% in a single session over concerns about gross margin pressure from a higher mix of AI revenue. Additional declines followed, with shares dropping another 5.6% yesterday, resulting in a cumulative drop of more than 17% over three trading days."
"Broadcom's ascent in 2025 stemmed primarily from explosive growth in its AI semiconductor business. Fiscal fourth-quarter AI revenue hit $6.5 billion, up 74% year-over-year, reflecting strong demand for custom AI processors and networking solutions from hyperscalers such as Google, Meta Platforms ( NASDAQ:META ), Anthropic, and OpenAI. The chipmaker secured major contracts, including partnerships for custom chips, that contributed to overall revenue growth of 28% in the quarter."
Broadcom rose about 46% year-to-date in 2025 and reached an all-time high of $414.61 per share before a sharp post-earnings decline. The stock dropped more than 11% in one session and another 5.6% subsequently, totaling over a 17% fall in three trading days due to concerns that a higher mix of AI revenue would pressure gross margins. Fiscal fourth-quarter AI revenue reached $6.5 billion, up 74% year-over-year, driven by custom AI processors and networking sales to hyperscalers. Major contracts and recurring infrastructure-software subscriptions from the VMware acquisition helped deliver overall revenue growth of 28%.
Read at 24/7 Wall St.
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