San Jose's Broadcom forecasts upbeat current-quarter sales on 5G bet, shares soar

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San Jose's Broadcom forecasts upbeat current-quarter sales on 5G bet, shares soar

Broadcom Corp, the San Jose, California-headquartered American multinational developer, manufacturer and supplier of a swathe of semiconductors ranging from data centre to software to wireless alongside industrial markets, had forecasted fourth-quarter revenue above Wall Street estimates later this week, as the Californian chipmaker seemed to be banking on a strong demand of its 5G semiconductors amid a broad-based adoption of the Gen-Z technology.

Apart from that, Broadcom had beaten an analysts’ estimates for its third-quarter profits and revenues that ended on August 1, eventually lifting the chipmaker’s shares’ prices nearly 2.0 per cent on Friday’s pre-market trading, however, after paring some gains late in the session, Broadcom rounded off the day 1.18 per cent higher to $497.68 per share.

In point of fact, although Broadcom’s upbeat forecast for fourth-quarter revenues came forth as a bolt out of the blues amid a steep lack in raw materials around the globe, several analysts had suggested that the San Jose-headquartered semiconductor industry megalith’s latest efforts to branch out its investments into software businesses, had insulated the company from having been heavily impacted by a global-scale supply chain disruption.

Broadcom forecasts upbeat fourth-quarter revenue on 5G bet

According to Broadcom’s quarterly earnings’ report for fiscal Q3, 2021 that ended on August 1, the Californian chipmaker had forecasted a roughly $7.35 billion in current-quarter revenues, well above a Wall Street estimate of $7.23 billion on an average, data from Refinitiv had unveiled.

Besides, Broadcom’s revenues surged as much as 16 per cent in Q3, 2021 compared to the same time a year earlier, beating an analysts’ expectation of $6.76 billion, as Broadcom Chief Executive Hock Tan was quoted saying in a post-earnings conference call with the analysts that the flamboyant performance had largely stemmed from a soaring demand in cloud, 5G, wireless alongside broadband segments among others.

Broadcom’s net income stood at $6.96 per share over third quarter of its fiscal 2021, topping an analysts’ estimate of $6.88 a share.