EL7.AI
StocksMediumUpdated×2•Originally published 6 March 2026•Updated 6 March 2026•
1 min read

Broadcom's AI Surge Tempered by Software Weakness and Investor Skepticism

Key Facts

1Broadcom more than doubled its AI revenue during the most recent quarter and beat both top and bottom-line expectations.
2Broadcom released forward guidance that came in well ahead of consensus estimates.
3JD.com shares are down 75% over the past five years despite the company reporting strength in its core business unit.

Broadcom Inc. (AVGO) reported Q1 revenue of $19.31 billion, up 29.4% year-over-year, while raising its Q2 revenue guidance to a robust $22 billion. Although AI chip sales are projected to surge 140% to reach $10.7 billion, the company's software business is currently underperforming and acting as a significant drag on overall results. Despite strong projections and an expected adjusted EBITDA margin of 68%, Broadcom is struggling to impress investors with its latest guidance. This reflects a broader market trend, similar to recent patterns seen with NVIDIA, where even exceptional forecasts fail to drive significant stock gains as market expectations peak. These updates highlight the growing disconnect between AI-driven growth and the operational challenges within Broadcom's diversified portfolio.