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AI Titans Stumble as Broadcom and Marvell Miss Sky-High Earnings Expectations, Sending Stock Values Plunging in High-Tech Tug-of-War

In the high-stakes world of AI networking chips, giants Broadcom and Marvell Technology recently threw down the gauntlet, predicting eye-catching earnings from their AI divisions—Broadcom alone boasting an ambitious $10 billion target for 2024. Yet, in a twist that sent shockwaves through Wall Street, their forecasts fell short of

Chris Dannen profile image
by Chris Dannen
AI Titans Stumble as Broadcom and Marvell Miss Sky-High Earnings Expectations, Sending Stock Values Plunging in High-Tech Tug-of-War

In the high-stakes world of AI networking chips, giants Broadcom and Marvell Technology recently threw down the gauntlet, predicting eye-catching earnings from their AI divisions—Broadcom alone boasting an ambitious $10 billion target for 2024. Yet, in a twist that sent shockwaves through Wall Street, their forecasts fell short of the sky-high investor hopes, triggering a sharp dip in their stock values. Broadcom, leading the charge with expectations of raking in $7 billion from custom AI chips crafted for two major yet mysterious clients, still couldn't dodge investor disappointment despite projecting a bullish 40% growth and aiming for an annual revenue behemoth of $50 billion. The reluctance to adjust their forecast, despite these optimistic figures, only deepened the blow to their market standing. In this AI gold rush, every number counts, and companies like Broadcom and Marvell find themselves under the microscope, their every financial move dissected by eager investors. The aftermath of their announcements was swift and unforgiving, with their stock prices taking a nosedive, a clear signal of the unforgiving pace and high stakes in the race to dominate AI technology. Notably, Broadcom's AI revenue soared to $2.3 billion in the quarter ending February 4, underlining the booming demand for AI tech but also the volatile dance of meeting market expectations. In a sector where the future is almost here, the lesson is clear: in the AI arms race, not even the giants can afford to blink.

Chris Dannen profile image
by Chris Dannen

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