CoreWeave, Broadcom Slide After Earnings as Guidance Misses Despite $2.1 Billion and $22.2 Billion Revenue
Updated
Updated · The Motley Fool · Jun 16
CoreWeave, Broadcom Slide After Earnings as Guidance Misses Despite $2.1 Billion and $22.2 Billion Revenue
3 articles · Updated · The Motley Fool · Jun 16
Summary
CoreWeave and Broadcom both fell after earnings even though quarterly revenue jumped to $2.1 billion and $22.2 billion, with investors focusing on weaker-than-expected guidance.
CoreWeave’s pressure was sharper because net loss widened to $740 million from $315 million a year earlier, overshadowing 111.6% revenue growth and a nearly $100 billion backlog.
Broadcom posted stronger profitability—adjusted EPS rose 54% to $2.44 and free cash flow climbed 60% to $10.3 billion—but its AI chip outlook still failed to clear Wall Street’s bar.
Both companies also carry concentration and valuation risks: Microsoft made up 67% of CoreWeave’s 2025 revenue, while Broadcom’s top five customers contributed about 40% over its last two fiscal years.
The selloff underscores how hard it has become for AI companies to satisfy investors, even as AI infrastructure spending is projected to reach $3 trillion to $4 trillion by decade-end.