Broadcom just reminded everyone why the AI trade isn’t done yet. The semiconductor giant saw its stock climb roughly 5-6% on June 2, hitting record highs as investors positioned themselves ahead of a fiscal Q2 earnings report that turned out to be genuinely impressive.
The catalyst wasn’t just internal hype. Alphabet’s announcement of an $80 billion AI infrastructure investment plan sent a clear signal: the biggest players in tech are still writing very large checks for AI hardware. And Broadcom, as a key supplier of custom AI chips to those very companies, stands to cash many of them.
The numbers behind the rally
When Broadcom reported earnings on June 3, the results backed up the optimism. AI semiconductor revenue hit $10.8 billion for the quarter, a 143% increase year-over-year. Total consolidated revenue reached a record $22.19 billion.
The stock did retrace after the report, though. The reason: Broadcom kept its full-year AI revenue guidance unchanged. Wall Street wanted more.
