Overview
- Broadcom reported record fiscal Q2 results on Wednesday with $22.19 billion in revenue, $2.44 adjusted EPS, and $10.8 billion in AI semiconductor sales that rose 143% year‑over‑year.
- The company guided Q3 revenue to about $29.4 billion and said Q3 AI chip sales should reach roughly $16 billion, while reaffirming a target to ship about 10 gigawatts of AI compute to six major customers by 2027 and to exceed $100 billion in AI chip revenue that year.
- Broadcom announced extended order visibility into 2028 and launched a $35 billion AI XPV compute financing platform to help hyperscaler customers fund massive infrastructure purchases.
- Investors reacted harshly to guidance that fell short of elevated expectations, wiping out more than $250 billion of market value and prompting scrutiny of execution timelines and dependence on a small group of customers.
- Broadcom’s model of building custom accelerators for a few hyperscalers differs from selling general‑purpose GPUs, which can speed revenue when ramps succeed but raises concentrated counterparty and financing risk for both Broadcom and its customers.