When Broadcom (AVGO), the broadest, most diversified firm fell after forecasting strong AI-related revenue, look out below.
Broadcom posted Q3 revenue of $13.07 billion. Adjusted EPS was $1.24. Revenue grew by 47.2% Y/Y. However, stripping out revenue from its VMWare acquisition, revenue grew by only 4% Y/Y. This low growth will pressure the share price. AVGO stock gained 75% in the last year and is up 36.9% YTD, excluding the post-earnings drop of nearly 7%.
CEO Hok Tan expects the company to report $12 billion in sales related to AI parts and custom chips this year. This is $1 billion more than the $11 billion previously forecast.
In the post-pandemic stock list, DocuSign (DOCU) will open up slightly this morning. The electronic document signing firm reported revenue of $736 million (up by 7.0% Y/Y). DOCU stock is fully valued as it prices in the slow growth ahead.
Automation software supplier UiPath (PATH) will open up by nearly 10%. The firm reported revenue growing by 10% Y/Y to $316 million. It raised its FY 2025 revenue guidance to up to $1.425 billion. The firm said that its CFO will take an expanded role as a Chief Operating Officer. Not only does this cut executive costs but it will help UiPath achieve operational efficiencies across its business.