Broadcom shares drop premarket despite Q4 earnings beat

Broadcom Inc. (AVGO) shares dropped about 5% in premarket trading on Friday, even after the company announced strong fiscal Q4 2025 results, including record revenue exceeding $18 billion, driven by AI semiconductor growth and a 26% increase in infrastructure software revenue.

Looking ahead, Broadcom projects Q1 2026 revenue of $19.1 billion, with AI revenue expected to double year-over-year to $8.2 billion, backed by a substantial $73 billion backlog.

However, the stock declined because management opted not to revise or increase its previous guidance projecting 40%-60% AI revenue growth for the full fiscal year 2026, a decision that reportedly disappointed stakeholders despite positive underlying growth indicators.

(Source：Crypto Briefing)