Broadcom Crashes After AI Chip Revenue Forecast Misses Broadcaom stock is plunging in after-hours trading, after the company reported Q2 results which delivered a disappointing forecast for AI chip revenue, signaling that the company is either progressing more slowly than anticipated in the burgeoning industry, or that unlike its peers, is actually truthful in predicting the potential of the AI bu...
Broadcom Crashes After AI Chip Revenue Forecast Misses Broadcaom stock is plunging in after-hours trading, after the company reported Q2 results which delivered a disappointing forecast for AI chip revenue, signaling that the company is either progressing more slowly than anticipated in the burgeoning industry, or that unlike its peers, is actually truthful in predicting the potential of the AI bubble. The historicals were ok: in the fiscal second quarter, which ended May 3, sales rose 48% to $22.2 billion, just barely beating the $22.1 estimate. AI semiconductor revenue was $10.8 billion, also just barely above estimates of $10.7 billion. That category includes custom-built accelerators - the chips used to develop and run AI models - as well as networking semiconductors. Adjusted EPS climbed to $2.44 a share, also modestly beat the median estimate of $2.39. But the forecast was a problem: AI semiconductor revenue will be $16 billion in the fiscal third quarter, missing analyst estimates of $17.2 billion. Total revenue will be about $29.4 billion, which while higher than the $28.6 billion median estimate was below some buyside bogeys which ranged billions of dollars higher. EBITDA guidance of 68.0%, also missed the street at 69.1%. The forecast miss is concerning: Broadcom has signed and expanded long-term deals with companies like Google, Anthropic and Meta but questions remain as to how much revenue will be recognized in each quarter, as opposed to being accounted for in a multiyear backlog. Investors were also disappointed after the company kept its full year AI target at 10GW in 2027 and $100BN in chip sales for the full year, instead of boosting guidance as it had in prior quarters. The pressure was also margin related as GOOGL TPU growth generating lower margins than networking and software. CEO Hock Tan has tied the company’s fortunes to AI gear, betting on a rapid expansion of data centers and other infrastructure. While Nvidia remains the dominant maker of ...
SpaceX is launching the largest U.S. IPO in history by pricing shares at $135, raising $75 billion to fuel rockets, Starlink and AI, while valuing the company at $1.77 trillion and keeping Elon Musk in firm control.
SpaceX is launching the largest U.S. IPO in history by pricing shares at $135, raising $75 billion to fuel rockets, Starlink and AI, while valuing the company at $1.77 trillion and keeping Elon Musk in firm control.
sshepard/iStock Unreleased via Getty Images Northrop Grumman ( NOC ) on Wednesday) said it shipped the final rocket components for NASA's Artemis III mission to Kennedy Space Center in Florida, marking another milestone in the agency's effort to return astronauts to the lunar surface for the first time since 1972. Rocket parts for NASA trip back to the moon (Northrop Grumman) The shipment includes...
sshepard/iStock Unreleased via Getty Images Northrop Grumman ( NOC ) on Wednesday) said it shipped the final rocket components for NASA's Artemis III mission to Kennedy Space Center in Florida, marking another milestone in the agency's effort to return astronauts to the lunar surface for the first time since 1972. Rocket parts for NASA trip back to the moon (Northrop Grumman) The shipment includes the last pieces needed to assemble the two large solid-fuel rocket boosters that will help power NASA's Space Launch System, or SLS, rocket. The components will be assembled at Kennedy Space Center this summer alongside hardware that arrived earlier this year. Artemis III aims to put astronauts back on the Moon Artemis III is NASA's planned mission to return humans to the Moon for the first time since the Apollo era. Under current plans, astronauts will launch aboard the Orion spacecraft atop the Space Launch System rocket, travel to lunar orbit and transfer to a separate landing vehicle that will carry crew members to the lunar surface before returning them to Earth. The mission is a key part of NASA's broader Artemis program, which seeks to establish a sustained human presence on and around the Moon as a stepping stone for future missions to Mars. Why it matters to investors While the shipment does not represent a new contract, it signals continued progress on one of NASA's largest and most closely watched space programs. Northrop Grumman ( NOC ) is a major supplier to the Artemis effort, providing the rocket boosters that generate much of the thrust needed to lift the Space Launch System off the launch pad. The milestone also highlights Northrop's position in the U.S. space industry, where government-funded programs can provide years of revenue and help sustain manufacturing capabilities that support both civil space exploration and national security programs. Rocket parts for Artemis III mission delivered by train (Northrop Grumman) The two boosters are attached to the...