Broadcom shares plunge after AI forecast disappoints

STORY: The AI boom isn’t boosting all chip stocks equally.Shares in Broadcom plunged as much as 13% Wednesday after its outlook for demand disappointed investors.The U.S. firm said it expects AI chip revenue of $16 billion in the third quarter, a little below expectations.Revenue for the previous period also fell short of Wall Street hopes.Chief Executive Hock Tan said Broadcom was leaving its long-range forecast for AI chip sales unchanged at $100 billion.The firm’s ability to meet demand has been strained by supply chain issues.It also faces a growing threat from rivals like Marvell Technology, which is making inroads with sales to tech giants.Even so, Broadcom remains a major beneficiary of the AI investment race.Analysts say it has a strong position in custom chips.They are in hot demand amid the rise of inference – the process by which chatbots respond to user queries.Big Tech firms like Alphabet and Microsoft are expected to spend some $700 billion on AI infrastructure…