Local time on Thursday, Broadcom (Broadcom) announced FY24 first quarter results report。The earnings report mentioned that they expected AI-related chips to bring in $10 billion in revenue this year, but the tech company's full-year forecast failed to meet investors' expectations, and its shares slipped.。Rival Marvell Technology's lower-than-expected forecast revenue sent its shares down more than 6% in extended trading。

Investors keep a close eye on the two companies, which they believe will gain some market share in the booming AI technology, such as OpenAI's ChatGPT or Google's Gemini.。

Both Broadcom and Marvell sell network chips that help process the large amounts of data needed for AI computations, and both can design custom AI chips for customers.。

In an earnings call with analysts, Broadcom CEO Hock Tan said the majority of the company's $7 billion in AI chip revenue in fiscal 2024 came from custom AI chips from two major customers.。Tan did not name the customers, but analysts generally believe the two are Google's parent company Alphabet and Meta Platforms, owner of Facebook.。

The company's gross margin on an adjusted basis for the first fiscal quarter was approximately 75%。Nvidia is reportedly planning to compete with Broadcom in the custom AI chip market。

Investors were also disappointed that Broadcom did not update its annual revenue forecast of $50 billion, despite an expected 40% increase in revenue.。

Broadcom shares rose 26% in 2024, driven by optimistic expectations for AI, but investors have higher growth expectations for the company。Shares fell more than 1% in after-hours trading after not raising forecasts。

Bob O'Donnell of TECHnalysis Research said: "For companies whose chips are not too closely associated with the AI boom, growth rates are bound to fluctuate, and these fluctuations are often not easily matched to major AI trends.。"

Shares of Broadcom and Marvell both rose more than 4% before the earnings announcement, and both hit record highs。

As tech giants such as Microsoft have increased their spending in data centers, and Broadcom is a supplier of many network chips, Broadcom is considered a beneficiary of the technology sector's generative AI push.。

Tan added that Broadcom's AI revenue rose to $2.3 billion in the first fiscal quarter ended February 4, which was offset by the current cyclical slowdown in corporate and telecom growth.。

In the first quarter, revenue from its semiconductor solutions division rose 4 percent to 73 percent..$900 million, slightly below market estimates of 74.500 million dollars。

Despite being a well-known chipmaker, Broadcom's portfolio has expanded into infrastructure software。In the fiscal first quarter, the company's infrastructure software revenue grew 153 percent to 45 percent..$700 million, more than market estimates of 44.900 million dollars。

Broadcom reported first fiscal quarter adjusted net income of 52.$500 million, above analyst estimates of 50.100 million dollars。In addition to factors such as stock compensation, earnings per share were adjusted to 10.$99 against an expectation of 10.30美元。