Broadcom's Revenue Falls Short Amid Weak Enterprise Spending and Chip Slump
Chipmaker Broadcom has forecasted annual revenue below Wall Street estimates due to weak enterprise spending and competition, casting a shadow on its recent acquisition of VMware. The company expects revenue of about $50.0 billion for fiscal 2024, falling short of analysts' expectations of $52.50 billion. Broadcom's revenue in the fourth quarter was $9.30 billion, slightly below estimates. The company also plans to divest VMware's non-core businesses and incur about $1 billion in transition costs. Analysts are concerned about the impact of slowing orders from major client Cisco Systems and competition from Nvidia.