US Stock Market Move | $73 billion AI order disappoints investors, Broadcom Inc. (AVGO.US) drops over 5% in pre-market trading.

On Friday, Broadcom Inc. (AVGO.US) fell more than 5% in pre-market trading, closing at $383.70. On the news front, the chip manufacturer had slightly weaker-than-expected orders for artificial intelligence. In the fourth quarter ending November 2, Broadcom Inc. reported sales of $18 billion, a 28% year-on-year increase, higher than analysts' expectations of $17.5 billion. Excluding certain items, earnings per share rose to $1.95, surpassing analysts' expectations of $1.87. The semiconductor business' revenue was $11.07 billion, a 34.5% increase year-on-year, while infrastructure revenue grew 19% to $6.94 billion. CEO Hock Tan stated that the company currently has a backlog of $73 billion worth of artificial intelligence product orders, which will be delivered over the next six quarters - a number that disappointed some investors. However, Tan clarified later that this was only a "floor." He said, "We anticipate that over the next six quarters, as more orders come in, our delivery volumes will increase significantly. Therefore, depending on the specific product, our delivery cycle may vary from six months to a year." Looking ahead, the company forecasts sales of approximately $19.1 billion in the first quarter ending February 1, compared to analysts' average expectations of $18.5 billion. AI semiconductor revenue in the first quarter is expected to double year-on-year, reaching $8.2 billion. The company has also raised its quarterly dividend by 10% to 65 cents per share.