Broadcom reported Q2 revenue of $22.2 billion, AI sales of $10.8 billion and EPS of $2.44, but guided Q3 AI chip revenue to $16 billion versus expectations of about $17.3 billion. Shares plunged 14%, erasing over $70 billion in market value as investors cited supply constraints and an unchanged 2027 AI revenue target above $100 billion.
Broadcom delivered fiscal Q2 revenue of $22.2 billion, with AI-related sales accounting for $10.8 billion, surpassing its internal forecast by $100 million, and reported earnings per share of $2.44.
The company guided fiscal Q3 AI chip revenue at $16 billion, falling about $1.3 billion short of analyst models of roughly $17.3 billion, while reiterating a 2027 AI revenue target above $100 billion.
Following the guidance gap, Broadcom’s stock tumbled 14%, wiping out more than $70 billion in market capitalization and marking one of its largest single‐day losses.
Investors flagged supply constraints as the primary limiter on AI output, while Bank of America and UBS maintained positive long‐term growth views; some analysts cautioned on margin pressure and customer shifts to alternative chip suppliers.
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