Overview
- Broadcom reported fiscal second-quarter results on June 3 with record revenue of about $22.2 billion and AI semiconductor sales of $10.8 billion, a 143% year‑over‑year rise.
- The stock fell sharply after the report, dropping roughly 12.6% the next trading session and extending losses to about an 18% decline across the week as traders reacted to unchanged near‑term guidance.
- Management reiterated targets for roughly $16 billion in AI chip revenue for the next quarter, about $56 billion for fiscal 2026, and more than $100 billion for fiscal 2027, and said Broadcom will focus on selling chips rather than fully integrated systems.
- Analysts stayed mostly bullish and raised price targets while flagging execution and timing risks, noting more than $30 billion in AI bookings versus about $10.8 billion shipped as evidence demand outpaces near‑term supply.
- Key near‑term signals to watch are supplier production ramps, conversion of booked orders into shipments, hyperscaler capex pacing, upcoming sector results such as Micron’s June 24 report, and how the higher AI mix affects Broadcom’s gross margins and cash flows.