AVGO reported mixed Q3 earnings with some misses leading to a price drop; however, growth and valuation remain strong enough that the miss does not signal stalled progress, though it fails to attract immediate buying.

Yes, me and Sam, this is something I wanted to come to you about, but the Broadcom news is coming. So, let's look at those numbers, Sam, I'll get back to you right away.

Broadcom's third- quarter EPS was 3.32. It was estimated to be 3.23. So, we made about 10 cents more there. Our income is 29.59 billion. This is slightly better than the expected 29.45.

So, we have exceeded expectations in terms of revenue.

We also have some guidelines. They estimate their fourth-quarter revenue to be around 34.8 billion. The expectation was around 35.05. So, slightly lower than market expectations for the next quarter.

And let's see if their EPS or earnings per share is available here. It hasn't arrived yet, but they are expecting 3.32 for the current quarter.

I haven't seen their instructions for this yet. However, the revenue from infrastructure was 8.75 billion. Which was lower than expected. Estimates were 8.88 and their fourth-quarter revenue guidance was again slightly below the 20.1 billion operating income.

This exceeded the estimate of 19.7. GAAP operating income came in at 16 billion.

However, the revenue from infrastructure was 8.75 billion. Which was lower than expected. Estimates were 8.88 and their fourth- quarter revenue guidance was again slightly below the 20.1 billion operating income.

This exceeded the estimate of 19.7. GAAP operating income came in at 16 billion.

Alex, we're going down fast. We are now down about 6% due to mixed reports. I mean, even though we're doing well in terms of revenue, let's look at some metrics and revenue analysis and future guidance.

I think this is a bit of a mixed report than we expected.

We also have semiconductor solutions revenue. This is an important metric that just came in at 20.84 billion. This is better than the expectation of 20.51. Yes, I think there are some things to keep in mind, you read the numbers.

They were lagging behind in several metrics. This is probably the first time that one of the major AI companies' earnings failed to meet expectations. So, we're starting from there, but I don't know how to say it.

I'm not sure if this is a big surprise for the market, as the stock was under a lot of pressure. It has fallen by more than 10% in the last few weeks. This is far below its peak.

Last time it was lagging behind in terms of guidance or at least seemed disappointing. Last time, it fell by more than 10% in response.

Yeah, I mean it's definitely not falling flat on its face. I mean semiconductor revenue, a very important metric. This was better than market expectations. This was better than the company's own forecast, which came in at $16.7 billion.

This is a 221% growth year-on-year and a 54% growth quarter-on-quarter.

And CEO Haque Tan said that the demand for AI accelerators and networking is still very strong. They also have AI semiconductor revenue forecasts for the next quarter. They expect it to grow to $21.7 billion.

So, there is no slowdown there. If they can meet that goal, it will be 236% growth per year.

And Sam, I know the market is waiting for the big number right now that we don't have yet, but maybe they can communicate it during the call, is the guidance for this fiscal year and the discussion of the $100 billion AI revenue target.

We don't have it yet, but my question is, is this enough to change the situation and turn the tide of the discussion?

Yes, everything I'm seeing is about that forecast growth, especially after they reiterated their revenue outlook last quarter. As Alex mentioned, Wall Street has been unable to overcome anxiety in recent months, especially after the events of last quarter, where we saw major stock price declines.

In fact, it was the worst earnings response we've ever seen.

Ben Emmons mentioned in the last few hours that the key driver could be that AI semiconductor revenue, which you mentioned because it's over $16 billion, up over 200% year-over-year, because of the hyperscaler demand that we're seeing.

But let's see what Haq Tan says on the call, because you have to pay attention to his every word. He is not a very public figure like Jensen Huang or Tim Cook, who is loud on Twitter, holds press conferences, or walks like a diplomat.

So let's see what they say, but he has assured investors in the past about these strong long-term contracts and they have clearly been rewarded for providing that transparency. So, let's see if they can do the same tonight.

The call will start in about 40 minutes. We'll listen to Broadcom, but let's take a look. Broadcom is down about 5%.