Catenaa, Friday, December 12, 2025- Broadcom stock falls over 10% after its sales outlook for the red-hot market failed to meet investors’ lofty expectations.
Chief Executive Officer Hock Tan, on a conference call with analysts, said the company has a backlog of $73 billion in AI product orders that will be shipped over the next six quarters, a number that disappointed some investors. But Tan sought to clarify that the figure was a “minimum.”
“We do expect much more as more orders come in for shipments within the next six quarters,” he said. “So our lead time, depending on the particular product it is, can be anywhere from six months to a year.”
The conference call followed a dizzying run-up in Broadcom shares, and investors were seeking more clarity on when and how the company will get a payoff from AI. Instead, they got a vague timetable without an AI revenue forecast for 2026, mixed with some concerns about tightening profit margins.
Though Tan said that the company received an $11 billion order from AI startup Anthropic PBC in the fourth quarter, he warned that total margins were narrowing because of AI product sales.
Broadcom also held off on giving an annual AI revenue forecast, with Tan saying it was “a moving target.”
“It’s hard for me to pinpoint what ’26 is going to look like precisely,” he said. “So I’d rather not give you guys any guidance.”
The call followed a generally upbeat earnings report on Thursday afternoon. Sales will be about $19.1 billion in the fiscal first quarter, which ends February 1, the company said.
The company also boosted its quarterly dividend by 10% to 65 cents a share.
Broadcom shares fell stood at $356.48 by 11 am on Friday; the shares have gained over 58% this year.
