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Broadcom stock slips on disappointing software revenue
Broadcom said AI revenue rose 143% to $10.8 billion, but investors focused on a revenue miss and a more than 11% extended-trading drop.
- On Wednesday, Broadcom reported fiscal second-quarter revenue of $22.19 billion, narrowly missing Wall Street's $22.27 billion estimate, causing shares to slide in extended trading despite adjusted earnings of $2.44 per share beating expectations.
- AI revenue more than doubled annually to $10.8 billion, which CEO Hock Tan attributed to custom AI chips and networking components, while net income surged 88% to $9.31 billion, or $1.91 per share.
- Semiconductor solutions revenue reached $15.1 billion, topping StreetAccount estimates of $14.72 billion, as the company forecasts next-quarter revenue of about $29.4 billion, exceeding Wall Street's $28.53 billion expectation.
- Meta and Broadcom deepened their AI chip partnership through 2029, while Anthropic's $10 billion December order and continued custom-chip designs by Amazon, Google, and Microsoft demonstrate sustained demand for Broadcom's technology.
- Broadcom shares have multiplied almost ninefold since 2022, when ChatGPT initiated the generative AI boom, and are up close to 40% this year as of Wednesday, outperforming the Nasdaq's 16% gain.
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18 Articles
Broadcom Q2 Earnings Call Highlights
Broadcom (NASDAQ:AVGO) reported record fiscal second-quarter 2026 revenue and issued a sharply higher outlook for the current quarter, as President and CEO Hock Tan said demand for the company’s artificial intelligence semiconductors remains “simply insatiable.” On the earnings call, Tan said total
Coverage Details
Total News Sources18
Leaning Left4Leaning Right2Center7Last UpdatedBias Distribution54% Center
Bias Distribution
- 54% of the sources are Center
54% Center
L 31%
C 54%
15%
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