Broadcom stock plunges on weak software sales, unchanged AI chip forecast for the year
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- Broadcom reported Q2 revenue of $22.19 billion, missing the $22.27 billion consensus, while earnings per share were $2.44 versus $2.40 expected.
- Broadcom's AI revenue more than doubled to $10.8 billion, and the company expects AI revenue to reach $16 billion this quarter.
- CEO Hock Tan reiterated AI semiconductor revenue guidance of “excess of $100 billion” for FY2026 but did not raise the target, prompting a short‑term stock decline.
- Broadcom's semiconductor solutions segment posted $15.1 billion in revenue, beating the $14.72 billion estimate.
- Broadcom's shares have surged ~40% YTD and are up ninefold since end‑2022, yet fell after earnings disappointment.
Why it matters: Investors see a near‑term pull‑back as the stock fell after the guidance hold, while Broadcom’s custom‑chip customers—Anthropic, Google, Meta and OpenAI—stand to benefit from continued AI demand and the company’s $100 billion revenue target.
