Broadcom $AVGO -0.49% reported second-quarter revenue of $22.19 billion, up 48% from a year earlier, as demand for its artificial intelligence chips accelerated — but the stock slid after results and guidance fell short of some investor expectations.
After-hours trading saw Broadcom shares drop 12%, The Wall Street Journal reported. Adjusted earnings per share came in at $2.44. Wall Street had been looking for adjusted earnings of $2.40 per share and revenue of $22.13 billion, per Barron's.
AI semiconductor revenue was the standout figure. The company said AI chip sales reached $10.8 billion in the quarter, a 143% increase from the same period a year earlier. Looking to the current quarter, Broadcom put its AI semiconductor revenue target at $16 billion — a figure that came in below analyst expectations of $17.2 billion, Yahoo Finance noted. That forecast would still represent more than 200% growth compared with the same period a year ago.
"Q2 semiconductor revenue from AI of $10.8 billion grew 143% year-over-year, above our forecast, driven by increasing demand for custom AI accelerators and AI networking," Broadcom President and CEO Hock Tan said in a statement.
Broadcom also left its full-year AI chip revenue target unchanged. "We expect this momentum to continue into fiscal year 2027 and reiterate our AI semiconductor revenue guidance to be in excess of $100 billion," Tan said on the earnings call, according to CNBC.
