Broadcom slips even as Q2 results, guidance top estimates

Broadcom (NASDAQ:AVGO) sharesfell 2.9%in extended trading on Thursday, even as the semiconductor and software company reported fiscal second-quarter results and guidance that topped expectations.

For the period ending May 4, Broadcom said it earned an adjusted $1.58 per share asrevenue rose 20.1% year-over-year to $15B. Semiconductor solutions revenue was $8.41B for the period, while infrastructure revenue was $6.596B.

Broadcom achieved record second quarter revenue on continued momentum in AI semiconductor solutions and VMware, said Broadcom CEO and President Hock Tan in a statement. Q2 AI revenue grew 46% year-over-year to over $4.4 billion, driven by robust demand for AI networking.

A consensus of analysts expected Broadcom to report adjusted earnings per share of $1.57 on revenue of $14.7B.

Broadcom makes application integrated specific circuits for a number of high profile customers, including Alphabet, Meta, ByteDance and others.

Looking to the third-quarter, Broadcom expects revenue to be about $15.8B, above the $15.75B estimate. Adjusted EBITDA is expected to be around 66% of total revenue.

AI semiconductor revenue in the third-quarter is expected to hit $5.1B, marking 10 consecutive quarters of growth, Tan added.

Broadcom also declared its quarterly dividend of $0.59 per share, payable on June 30, to stockholders of record on June 20.

The company will host a conference call at 5 p.m. EST to discuss the results.