Broadcom Stock Drops 5% Despite $22.2B Q2 Revenue and 143% AI Surge
Broadcom posted record fiscal Q2 revenue of $22.2 billion, including a 143% jump in AI semiconductor revenue to $10.8 billion and bookings exceeding $30 billion. Shares fell nearly 5% after executives signaled cautious AI chip demand forecasts despite robust operating margins of 67%.
1. Record Q2 Revenue
Broadcom achieved fiscal Q2 revenue of $22.2 billion, marking its highest quarterly sales to date driven by continued strength in its semiconductor and infrastructure software segments.
2. AI Semiconductor Surge
Revenue from AI semiconductors surged 143% year-over-year to $10.8 billion, reflecting escalating demand for high-performance chips in data centers and networking applications.
3. Strong Bookings Signal Future Demand
The company reported total bookings surpassing $30 billion for the quarter, underscoring continued customer commitments and anticipated backlog of AI and infrastructure orders.
4. Guidance Spurs Share Decline
After reporting a gross margin of 65.7% and operating margin of 67%, management issued a conservative outlook for AI chip demand growth, triggering an almost 5% drop in shares.
