Broadcom shares drop after earnings on uncertainty over AI revenue

Despite strong fourth-quarter results, Broadcom shares fell in after-hours trading as CEO Hock Tan declined to provide a concrete AI revenue forecast for 2026, disappointing investors.

Broadcom Inc. lost about 5% in after-hours trading on Thursday following comments from CEO Hock Tan that followed the company’s quarterly earnings report.

The chipmaker said it has $73 billion in AI product orders scheduled for delivery over the next six quarters. While significant, the figure fell short of some investors’ expectations. Tan emphasized that the number represents a “minimum” and expects more orders, but declined to give a revenue forecast for AI in 2026, calling it a “moving target.”

The uncertainty contrasts with Broadcom’s strong share performance, which has surged more than 75% this year, raising the risk of investor disappointment. Concerns over narrowing profit margins due to higher AI product sales added to the cautious sentiment.

The company posted better-than-expected results for the fourth quarter, with revenue of $18 billion and adjusted earnings per share of $1.95, beating consensus estimates. Broadcom also announced a 10% increase in its quarterly dividend.

Despite the strong financials and major AI-related orders from Anthropic and OpenAI, the market reacted to the lack of a clear AI revenue outlook, sending shares lower after hours.