Broadcom (AVGO) posted strong earnings but plummeted $13 a share.

All thanks to guidance for the current quarter.

Revenue jumped 47% to $13.07 billion, which was above expectations of $12.97 billion. Adjusted EPS of $1.24, up 18% year over year, beat estimates by four cents. EBITDA of $8.22 billion even beat estimates of $7.8 billion.

Unfortunately, its outlook was mixed.

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Broadcom provided revenue guidance for the current quarter of $14 billion versus the $14.11 billion consensus.

However, despite that guidance, analysts at Evercore reiterated an outperform rating on the stock with a $201 price target. The firm also cited the company’s “excellent” AI visibility, as noted by CNBC. Goldman Sachs also reiterated a buy rating on AVGO with a $190 target.

“In the near-term, post this quarter’s hiccup, we envision a re-acceleration in the AI Semiconductor business coupled with a cyclical recovery in the non-AI revenue stream … putting the company back on a beat and raise cadence,” Goldman Sachs added.

Sincerely,

Ian Cooper