Wall Street had itself a moment. AI chip stocks surged in early June 2026, with Broadcom leading the charge as investors bet on another blockbuster quarter for the semiconductor sector.
Then the earnings actually dropped, and the hangover arrived quickly.
The rally, the results, and the reality check
Broadcom reported fiscal Q2 2026 revenue of $22.19 billion, a 48% jump year-over-year that edged past what analysts had expected. AI semiconductor revenue more than doubled to approximately $10.8 billion.
Shares had climbed nearly 40% year-to-date heading into the print, hitting record highs on June 2 after Alphabet announced an $80 billion AI funding commitment in late May. On June 2 alone, Broadcom shares rose nearly 5%. Shares fell more than 12% in after-hours trading following the June 3 report, after the company left its 2027 AI revenue forecasts unchanged.
