A smartphone with a displayed Broadcom logo is placed on a computer motherboard in this illustration taken March 6, 2023.
REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing RightsSept 1 (Reuters) - Broadcom shares (AVGO.O) fell 4.2% in premarket trading on Friday as the semiconductor maker's quarterly revenue forecast fell short of investors' lofty expectations following bigger rival Nvidia's (NVDA.O) AI-powered blockbuster results.
"Off the back of Nvidia's blowout earnings update, anything less than stellar is being seen as disappointing," said Danni Hewson, head of financial analysis at AJ Bell.
The company, which supplies chips that help glue together AI supercomputers and traditional servers, expects networking revenue to jump 20% in the fourth quarter.
Broadcom's forward price-to-earnings ratio for the next 12 months stood at about 20, compared with Nvidia's 35, according to Refinitiv data.
Dado Ruvic, Danni Hewson, AJ Bell, Hargreaves, Sophie Lund, Yates, Chavi Mehta, Devika
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