Broadcom just posted one of the strongest quarters in its history, and the stock got punished for it. Shares of AVGO fell roughly 14-15% in after-hours trading and the following session after the company reported fiscal Q2 2026 earnings on June 3, despite beating expectations on both the top and bottom lines.
The culprit: an unchanged full-year AI revenue target of $100B that left traders wanting more.
The numbers tell one story, the stock tells another
Broadcom’s fiscal Q2 revenue landed at $22.19B, a 48% jump compared to the same quarter a year ago. Adjusted earnings per share came in at $2.44, topping analyst estimates.
The real headline within the headline was AI semiconductor revenue. That segment generated $10.8B, a 143% year-over-year increase. For context, that single business line now accounts for roughly half of the company’s total quarterly revenue.
