Broadcom’s AI Accelerator Business Is Booming Even as Shares Slide

Broadcom Inc. just reported a strong quarter with revenue and profit well above Wall Street expectations, driven by rapid growth in its artificial‑intelligence accelerator segment. The semiconductor giant posted roughly $18 billion in Q4 revenue and adjusted earnings of about $1.95 per share, beating consensus estimates. Its AI‑related revenue surged around 74 % year‑over‑year, marking another quarter of accelerating demand for its custom chips, AI switches, and data‑center products. The company also revealed a robust AI product order backlog worth tens of billions of dollars, including major orders from AI start‑ups like Anthropic. Analysts widely raised their price targets and maintain bullish ratings on the stock. Despite the strong results, Broadcom’s share price fell sharply after the earnings release. Investors appear concerned that the growing mix of AI‑related sales—which often carry lower gross margins than its traditional products—will compress overall profitability. Management warned that gross margins could dip as AI revenue becomes a larger share of total sales, and commentary during the earnings call was seen as cautious, dissuading some traders. This has contributed to broader AI stock volatility and profit‑taking across the tech sector, even as long‑term demand for AI infrastructure remains strong. #Broadcom #AIAccelerators #SemiconductorStocks #TechEarnings #SlimScan #GrowthStocks #CANSLIM