Broadcom shed more than $300bn in market value on Wednesday, putting it on course for one of the largest single-day wipeouts, as the chip giant delivered AI revenue guidance that fell short of investors’ highest expectations.
Shares fell as much as 15.4 per cent in after-hours trading on Wednesday as the US chip company gave guidance of $29.4bn in revenue for the current quarter, above consensus estimates of $28.2bn, according to Visible Alpha, but short of the highest estimates.
“The AI revenue guidance came in a bit light,” said Melissa Otto, head of research at Visible Alpha. “I suspect this was the catalyst to take shares lower after hours.”