Broadcom Q2 AI Bookings Top $30B, Shipments $10.8B as Shares Slump 15%
Broadcom shipped $10.8 billion of AI chips and secured over $30 billion in bookings in Q2 while extending demand visibility into 2028 and reaffirming a $100 billion AI semiconductor revenue target by 2027. Despite beating earnings forecasts, its shares dropped 15% on valuation concerns and mixed AI guidance.
1. Q2 AI Performance
Broadcom reported shipping $10.8 billion of AI chips in the quarter and secured over $30 billion in AI bookings, driving an earnings beat that surpassed consensus forecasts and underlining strong demand for its AI portfolio.
2. Guidance and Targets
Management extended demand visibility into 2028 and reaffirmed an ambition to achieve $100 billion in AI semiconductor revenue by 2027, highlighting confidence in the company’s long-term AI infrastructure strategy.
3. Market Reaction
Despite robust results, shares declined 15% as investors weighed high valuation multiples and expressed caution over mixed signals in the company’s AI guidance, triggering a notable market correction.
4. Analyst Rating
An analyst downgraded Broadcom from Buy to Hold, citing overinflated market expectations and signaling that, while fundamentals remain solid, upside may be limited until guidance clarity improves.
