By Geoffrey Seiler
Publication Date: 2025-12-16 01:45:00
Broadcom’s stock fell after reporting earnings despite another quarter of robust top- and bottom-line growth.
Broadcom (AVGO 5.65%) ended its fiscal year riding strong momentum from increasing artificial intelligence (AI) infrastructure demand. However, the stock slipped after CEO Hock Tan clumsily answered a question about customer-owned tooling, which is the risk that customers would take the bulk of the design work in-house and forgo using Broadcom.
Let’s take a closer look at Broadcom’s recent results to see if this dip is a buying opportunity.
Strong momentum continues
Both Broadcom’s networking and custom AI chip businesses performed well to close out its fiscal year. It saw its fiscal Q4 AI revenue soar 74% to $6.5 billion and projected that it would double in fiscal Q1 to $8.2 billion. Meanwhile, it noted a $73 billion AI backlog consisting of custom AI chips and networking components that it will fulfill over the next 18 months.
The company also announced that it had…