On Friday, September 6, the value of Broadcom shares fell by more than 7% because this company specializing in the production of chips and based in San Jose, California, released a revenue forecast that disappointed investors who have high expectations about the commercial aspect of artificial intelligence microcircuits making activities.
It is worth noting that many chip manufacturing firms are currently facing the pressure of significant Wall Street bets on the area of machine intelligence. For a long period, the value of such companies’ shares has been on an upward trajectory. This dynamic was because investors made big bets on hardware that supports generative artificial intelligence technology.
CFRA Research analyst Angelo Zino says that the drop in the value of Broadcom shares is due to the lack of growth in estimates and prospects for generating revenue from AI.
Angelo Zino says that while Broadcom increased its sales forecast for artificial intelligence chips by $1 billion for the fiscal year ending October to $12 billion, the boost corresponded with widespread expectations.
If the losses continue, the company’s market capitalization will decrease by more than $54 billion.
It is worth noting that chips are necessary for training and ensuring the process of subsequent functioning of artificial intelligence systems. AI is currently on a trajectory of active development and scaling. In the context of this process, the issue of cybersecurity has been updated. Scammers also have access to artificial intelligence, which is why their activities have become more sophisticated. Personal awareness of users is important to counteract the corresponding threat. For example, a query in an Internet search engine, such as how to know if my camera is hacked, will allow anyone to get information about signs of unauthorized access to the device.
