Broadcom posted October quarter results on December 11 after markets closed. The company’s revenue came in at $18.02 billion, solidly beating expectations of $17.46 billion. Meanwhile, adjusted earnings per share (EPS) rose 37% to $1.95, beating expectations of $1.87.

An upbeat quarter doesn’t seem like enough to send Broadcom’s stock higher after a strong run so far this year.

Investors pulled back from the chip firm despite beating Wall Street’s expectations for quarterly earnings and revenue.

Broadcom stock plunges as lower-margin AI revenue pressures profitability despite strong earnings and a record $73B backlog.

Yesterday we were watching whether Broadcom could sustain its AI momentum and deliver guidance that justified its 75% rally this year. The company beat on both revenue and earnings after the bell, and CEO Hock Tan delivered the kind of forward commentary investors wanted to hear.

Goldman Sachs analyst Kash Rangan lowered its price target to $220 from $320, while maintaining a neutral rating. Rangan cited modest reported revenue growth and noted that higher capital expenditures and free cash flow burn increased concerns over Oracle’s growing financial needs.

Broadcom posted better-than-expected earnings on AI demand, and said it sees that momentum continuing in the current quarter.

Broadcom Inc., a chip company vying with Nvidia Corp. for AI computing revenue, slumped after its sales outlook for the red-hot market failed to meet investors’ lofty expectations.