Shares down 7.2% premarket (Il Sole 24 Ore Radiocor) - New York, 06 Sep - Shares in Broadcom fell sharply in premarket trading after the semiconductor and chip technology group provided sales guidance that fell short of expectations.

Revenue in the company's fiscal year third quarter rose 47% on the year to 13.072 billion dollars while adjusted earnings per share was 1.24 dollars, both above market expectations.

But Broadcom said it expected fourth quarter revenue guidance of approximately 14.0 billion dollars. That is below an analyst consensus of 14.04 billion dollars.

Some analysts have expressed concern Broadcom's AI chip business could be impacted by slowing client spending.

"Broadcom's third quarter results reflect continued strength in our AI semiconductor solutions and VMware," said Hock Tan, President and CEO of Broadcom.

"We expect revenue from AI to be $12 billion for fiscal year 2024 driven by Ethernet networking and custom accelerators for AI data centers." At 1226 GMT, Broadcom shares were down 7.2% premarket.

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(RADIOCOR) 06-09-24 14:34:51 (0404) 5 NNNN