Broadcom shares fell 12% despite beating Q2 earnings and revenue estimates, as AI chip revenue guidance remained unchanged. The company's revenue climbed 48% to $22.2 billion, fueled by a record 143% surge in AI semiconductor sales to $10.8 billion. AI bookings exceeded $30 billion, providing management visibility through 2028, while free cash flow reached $10.3 billion with operating margins expanding to 67%.
Analysts lift Broadcom's free cash flow estimates through 2028, viewing the recent price dip as a strategic entry point fueled by robust AI-driven semiconductor demand.
Read the full storyBroadcom reported a 48% revenue climb to $22.2 billion, driven by record AI semiconductor demand and a massive $30 billion backlog securing growth through 2028.
Broadcom stock fell following its Q2 earnings report as high investor expectations offset a doubling in AI-related revenue and successful VMware integration.
Broadcom beat Q2 2026 estimates, but shares fell 12% after the company maintained its AI chip revenue guidance despite surging demand in the sector.