Broadcom just posted the kind of quarter most companies would frame and hang on the wall. Record revenue, earnings beats, AI chip sales nearly tripling. The stock dropped 4%.
The numbers that should have been enough
Broadcom reported fiscal second-quarter 2026 revenue of $22.19 billion, a 48% jump from the same period last year. That topped the Wall Street consensus estimate of roughly $22.13 billion. Adjusted earnings per share landed at $2.44, edging past the $2.40 analysts had penciled in.
The real headliner was AI semiconductor revenue, which hit $10.8 billion for the quarter. That’s a 143% increase year-over-year, right in line with the company’s own guidance of $10.7 billion. For context, Broadcom’s AI chip revenue in the prior quarter (Q1 FY2026) was $8.4 billion, which itself represented 106% growth.
Shares initially plunged nearly 8% before recovering to a roughly 4% decline.
