Broadcom Shares Sink 13% as Software Miss and Unchanged $100 Billion AI Outlook Disappoint
Updated
Updated · CNBC · Jun 3
Broadcom Shares Sink 13% as Software Miss and Unchanged $100 Billion AI Outlook Disappoint
3 articles · Updated · CNBC · Jun 3
Summary
$22.19 billion in fiscal Q2 revenue missed the $22.27 billion consensus, sending Broadcom shares down more than 13% after hours despite adjusted EPS of $2.44 topping estimates.
$7.18 billion in infrastructure software sales fell short of the $7.32 billion expected, while CEO Hock Tan also reiterated—rather than raised—the company’s 2026 AI semiconductor revenue target of more than $100 billion.
$10.8 billion in Q2 AI revenue more than doubled from a year earlier, and Broadcom forecast $16 billion for the current quarter, but Tan said many bookings are not for immediate delivery.
$29.4 billion in current-quarter revenue guidance topped the $28.53 billion Wall Street estimate, yet investors focused on signs that AI growth may not be accelerating fast enough to justify the stock’s near-ninefold rise since late 2022.