Broadcom stock has experienced a sharp pullback following its latest quarterly results. Investors are concerned about the lack of clarity regarding the new fiscal year. However, there is optimism that Broadcom will bounce back from this negativity. The company’s revenue for fiscal Q4 hit a record $18 billion, with Non-GAAP earnings up 37% year over year to $1.95 per share.

Broadcom’s guidance for the current quarter is strong, with an expected revenue of $19.1 billion, signaling a 28% year-over-year increase. However, investors are wary of potential margin compression due to increased AI revenue. The company’s AI backlog of $73 billion and the lack of full-year guidance have also raised concerns among investors.

Despite trading at an expensive valuation, Broadcom’s AI prospects look promising. The company reported a 74% increase in AI semiconductor revenue last quarter, with expectations for further growth. With a backlog of $162 billion and a potential revenue jump of 51% this year, Broadcom’s growth trajectory is compelling. It may be a good buying opportunity following the recent pullback.

Read more at Yahoo Finance: Where Will Broadcom Stock Be in 1 Year?