Broadcom’s $22.19 billion Q2 revenue fell short of expectations, prompting a selloff despite strong AI chip growth.
Broadcom Inc. (NASDAQ:AVGO) reported Q2 2026 revenue of $22.19 billion, missing Wall Street estimates and triggering a more than 20% decline in its shares. The company reiterated its $100 billion AI revenue forecast for fiscal 2027, disappointing investors who anticipated an upgrade.
AI chip sales reached $16 billion, slightly below expectations but up from $5.2 billion a year ago. Broadcom remains a key supplier for major tech firms like Alphabet and Meta, positioning it as a competitor to Nvidia. The stock has still gained 57% over the past 12 months despite the recent drop.
The selloff dragged down the broader chip sector, with Marvell, AMD, Intel, Micron, and Qualcomm all posting declines between 1.6% and 6.5%. Analysts remain divided on the stock’s outlook amid ongoing AI demand.