Broadcom’s Q2 revenue of $22.19 billion fell short of the $22.27 billion consensus, though AI-driven earnings beat expectations.
Broadcom reported fiscal second-quarter revenue of $22.19 billion, slightly below the $22.27 billion estimate, despite a 48% year-over-year increase. Adjusted earnings per share rose 54% to $2.44, surpassing the $2.40 forecast, while adjusted EBITDA climbed 52% to $15.24 billion, exceeding the $15.06 billion consensus.
The company’s AI-related businesses, including networking and custom chips, drove growth, offsetting softness in infrastructure software. However, the market reacted negatively to guidance that did not exceed AI revenue expectations, leading to a post-earnings sell-off.
Broadcom remains a key player in AI semiconductors, benefiting from strong demand and shareholder-friendly policies like dividends and buybacks. Competitors include Marvell Technology, AMD, and Nvidia.