Broadcom just reported a quarter where its AI semiconductor revenue surged 143% year over year to $10.8 billion. The reward for that performance? A stock drop of more than 13% in after-hours trading, erasing over $250 billion in market value.
What actually happened
Broadcom posted fiscal second-quarter 2026 results on June 3, delivering overall revenue of $22.19 billion. The AI semiconductor segment came in at $10.8 billion, slightly beating the company’s own internal guidance.
The company projected third-quarter AI chip revenue of $16 billion. Wall Street consensus estimates had ranged from roughly $16.36 billion to $17.2 billion. Broadcom’s forecast missed the low end of analyst expectations.
Shares dropped 13% to 15% in after-hours trading on June 3 and 4, with the last comparable decline occurring in January 2025. A $16 billion quarterly AI revenue forecast would represent roughly a 48% jump from the $10.8 billion just reported.
