Broadcom’s current-quarter revenue forecast has come in below Wall Street’s projections, signaling that the artificial intelligence investment boom is delivering a weaker-than-anticipated boost to the chipmaker’s financial performance. The company guided to roughly $34.8 billion in sales for the fiscal quarter ending in October, while the average analyst estimate compiled by Bloomberg stood at approximately $35.1 billion, with some individual forecasts climbing as high as $36 billion.

In response, Broadcom’s stock took a sharp downturn in extended trading. The company also projected AI chip revenue of about $21.7 billion for the current quarter, marginally above the consensus estimate—though several analysts had penciled in figures exceeding $22 billion. Just last week, rival NVIDIA delivered a substantially stronger-than-expected outlook, underscoring the intensifying competitive pressure in the AI processor arena.

Broadcom is actively challenging NVIDIA’s dominance in the AI chip market through its custom silicon initiatives. While the company has secured several major clients, this segment of its business is still in its developmental infancy. As of Wednesday’s market close, Broadcom’s shares had risen only 6.1 percent year-to-date, a performance that trails many of its semiconductor peers.

Looking at the prior fiscal quarter, Broadcom posted revenue of $29.6 billion, reflecting an 86 percent surge from the same period a year earlier and slightly beating the average analyst projection of $29.5 billion. Within that total, AI semiconductor revenue reached $16.7 billion, comfortably surpassing the consensus estimate of $15.9 billion.