The US chipmaker Broadcom missed the stock market's expectations with its outlook for the fourth fiscal quarter. The technology company's stock recently dropped 9.52 percent in pre-market trading on the New York Stock Exchange (NYSE) and traded at 138.27 US dollars. Broadcom projected revenues of around 14 billion US dollars when presenting its quarterly figures, while analysts had on average expected 14.1 billion US dollars. The weaker growth outside the booming AI market is affecting the company's business.

In the third quarter, which ended in late July, Broadcom nevertheless achieved strong results. Revenue increased by 47 percent year-over-year to approximately 13.1 billion US dollars, surpassing market expectations. The main driver of this growth was the acquisition of the software company VMware. Without this deal, revenue would have only increased by four percent. Broadcom expects AI applications to generate 12 billion US dollars in revenue for the company this year.

Despite the increase in revenue, Broadcom had to incur a quarterly loss of $1.875 billion. In the same period of the previous year, the company recorded a profit of $3.3 billion. The loss resulted from a charge of $4.5 billion due to the transfer of intellectual property rights to the USA as part of a supply chain restructuring. Broadcom has significantly expanded through acquisitions in recent years. The company's products are widely used in data centers, cars, and smartphones – with technology giant Apple among its customers.