Broadcom reported a revenue miss for fiscal Q2 2026, sending shares down more than 13% in after-hours trading. The company posted $22.19 billion in revenue, slightly below the $22.27 billion analysts expected. Despite a 48% year-over-year jump, the miss was enough to rattle investors.
The bright spot: AI semiconductor revenue surged 143% to $10.8 billion. Adjusted earnings per share came in at $2.44, beating the $2.40 consensus. But the market focused on the guidance.
Broadcom projected Q3 revenue of about $29.4 billion, with AI chip revenue of $16 billion. That fell short of expectations ranging from $16.36 billion to $17.2 billion. CEO Hock Tan also left the 2027 sales forecast unchanged, heightening anxiety.
Adding to the concern, reports emerged that Google, a key AI chip customer, may be exploring other suppliers. Broadcom designs custom AI chips for Google and Meta, and any diversification could pressure margins.
Nasdaq futures slipped as traders reassessed the AI semiconductor outlook. The stock's drop, despite strong AI growth, signals market jitters over future scaling.