Broadcom stock slips on disappointing software revenue

Broadcom CEO Hock Tan speaks at the digital X event in Cologne, Germany, on Sept. 13, 2022. Ying Tang | Nurphoto | Getty Images Broadcom reported weaker-than-expected revenue in its fiscal second-quarter earnings report. The stock slid in extended trading. Here's how the chipmaker did versus LSEG consensus estimates: Earnings per share: $2.44, adjusted, versus $2.40 estimated Revenue : $22.19 billion versus $22.27 billion estimated Revenue climbed 48% from $15 billion in the same quarter a year earlier, Broadcom said in a statement. Sales have climbed in recent quarters, driven by demand for custom AI chips, including Google's tensor processing unit. The company said revenue this quarter will be about $29.4 billion, versus $28.53 billion expected by Wall Street analysts. Broadcom shares are up close to 40% this year as of Wednesday's close, topping the Nasdaq's 16% gain. The stock has multiplied almost ninefold since the end of 2022, when ChatGPT kicked off the generative AI boom. Net income increased to $9.31 billion, or $1.91 per share, up 88% from $4.97 billion, or $1.03 per share in the same quarter a year earlier. Adjusted earnings exclude stock-based compensation and tax adjustments. Broadcom helps other technology companies build custom chip designs, offering intellectual property and other essential technologies that AI chips require. …