(AOF) – The manufacturer of semiconductors and publisher of infrastructure software Broadcom is expected to be close to equilibrium due to the expected slowdown in its growth. In the second quarter, which ended in late April, the group made net profit of $3.48 billion, or $8.15 per share, compared with net profit of $2.59 billion, or $5.93. per share, a year earlier. Excluding exceptional items, earnings per share reached $10.32, compared to the Bloomberg consensus of $10.15.
Broadcom’s sales rose 8% to 8.733 billion dollars while the market was targeting 8.72 billion.
In the third quarter, the technology group is aiming for a turnover of around 8.85 billion dollars, higher than Wall Street’s expectations: 8.76 billion dollars. This would be its weakest growth in several years.
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Growing market and price pressures
According to the SIA, global chip sales were $151.7 billion in the first quarter of 2022, up 23% year-on-year. Sales increased in all major regional markets and for all product categories. As global uncertainties, including the war in Ukraine and the health crisis, weigh on supply chains, demand for semiconductors continues to significantly outpace supply. Manufacturers Samsung and TSMC have announced that they will raise their prices, in a context where players in the sector have good leeway and benefit from increased bargaining power. However, wage increases and component prices could weigh on future performance.