Broadcom shares tumble 13% after AI revenue guidance
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- Broadcom posted fiscal Q2 2026 revenue of $22.187 billion, up 48% year‑over‑year.
- Broadcom’s AI semiconductor sales rose to $10.8 billion, a 143% year‑over‑year increase that beat its own forecast.
- Hock Tan told the earnings call “We’re not seeing it,” rejecting fears that agentic AI will erode the software licensing model.
- Broadcom projected Q3 AI semiconductor revenue above $16.0 billion, a >200% year‑over‑year jump from Q2.
- AVGO shares fell about 13% in after‑hours trading to $413.21 after the earnings release.
- Jensen Huang echoed Tan’s view at Computex, dismissing the “Saaspocalypse” narrative and saying AI creates demand for software tools.
Why it matters: Investors are penalizing Broadcom’s valuation because the steep AI‑revenue guidance suggests future growth may not justify current share prices, causing a sharp after‑hours sell‑off that erodes shareholder value even as the company posts record earnings and cash flow and reinforces the market’s demand for clearer profitability timelines.
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