Broadcom Inc. (NASDAQ:AVGO) stock fell in premarket trading Thursday after the chipmaker reported fiscal second-quarter 2026 results that topped earnings estimates but failed to satisfy Wall Street’s elevated expectations for artificial intelligence growth.
While the company delivered record profitability, accelerating AI revenue and a bullish third-quarter outlook, investors focused on what Broadcom did not do: raise its long-term AI revenue target.
With AI-related stocks priced for increasingly aggressive growth, Broadcom’s decision to maintain its forecast rather than lift it triggered profit-taking across the semiconductor sector.
Investor expectations had climbed sharply ahead of the report, with Broadcom gaining about $270 billion in market value in five trading sessions as enthusiasm around its AI business accelerated, according to Bloomberg.
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