Overview
- Broadcom posted Q2 FY2026 revenue of $22.19 billion with $10.8 billion in AI semiconductor sales and management said fiscal 2027 AI revenue could exceed $100 billion.
- Management reported more than $30 billion in AI semiconductor bookings, which creates a sizable backlog versus the $10.8 billion shipped and gives multi‑quarter visibility while also raising execution and margin questions.
- The stock fell sharply this week, dropping roughly 12%–25% from recent highs after headlines about an expanded Google–Marvell partnership, VMware security issues and a Bank of America downgrade.
- Several firms responded with bullish research notes, including BMO’s Outperform with a $455 target and a $403 target from 24/7 Wall St., even as analysts warn of hyperscaler concentration and potential gross‑margin pressure.
- Investors will watch Broadcom’s fiscal Q3 results as the key near‑term catalyst that could confirm backlog conversion, clarify customer timing risks and reshape the debate over whether the selloff is an overreaction.