11:45 AM EST, 11/05/2024 (MT Newswires) -- Broadcom's ( AVGO ) fiscal year 2025 outlook was lowered due to various factors, including seasonal slowdowns, adjustments in Google's Tensor Processing Unit timelines, and potential changes in Apple's ( AAPL ) Wi-Fi component needs, BofA Securities said in an earnings preview emailed Tuesday.

The firm now expects fiscal 2025 sales of $59.3 billion and earnings per share of $6.

Broadcom's ( AVGO ) move to quarterly guidance instead of annual may amplify the focus on potential fluctuations in both AI-related and non-AI seasonal sales, according to the firm.

BofA said it expects Broadcom's ( AVGO ) AI revenue to grow as a percentage of sales from about 23% to 24% to over 30% by fiscal year 2026 as revenue from custom AI and networking products is expected to increase significantly.

The firm expects Broadcom ( AVGO ) to increase its dividend by about 14% in fiscal 2025 to $2.40 per share.

BofA reiterated its buy rating on Broadcom's ( AVGO ) stock and kept the price objective at $215.

Shares of the company were up 2.3% in recent trading.

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