AVGO’s AI semiconductor sales surged to 49% of total revenue in Q2 FY2026, outpacing its high-margin software segment’s 9% growth.
Broadcom’s AI semiconductor revenue climbed 143% year-over-year in Q2 FY2026, reaching 49% of total revenue. The company reported $30 billion in quarterly AI bookings and $10.3 billion in free cash flow.
In contrast, Broadcom’s software business, which operates at a 93% gross margin, grew just 9% year-over-year and accounted for 32% of revenue. The shift toward AI chips has raised concerns about declining blended gross margins.
Despite a sector-wide AI sell-off, Broadcom’s strong cash flow and AI bookings may attract investors focused on long-term growth.