- Broadcom's AI chip revenue hit $10.8 billion in Q2 2026, up 143% year-over-year, beating the company's own forecast.
- The stock dropped 13.78% in after-hours trading because Q3 AI chip guidance of $16 billion came in below analyst expectations.
- CEO Hock Tan left Broadcom's $100 billion fiscal 2027 AI revenue target unchanged, and the market responded as though it had been cut.
On Thursday morning, June 4, the US chipmaker Broadcom's stock was tracking a loss that could wipe more than $285 billion from its market cap, after the announcement of its quarterly report. The Q2 fiscal 2026 revenue came in at $22.19 billion, up 48% year-over-year, driven by $10.8 billion in AI chip revenue, up 143% and above the company's own forecast.
Earnings per share came in at $2.44, beating the Wall Street estimate of $2.39. Free cash flow reached $10.3 billion, representing 46% of revenue. Operating margin hit 67%, and adjusted EBITDA reached 69%, both quarterly records. CEO Hock Tan said Broadcom achieved record revenue, operating profit and free cash flow in Q2, driven by accelerating growth in AI semiconductor revenue and strong operating leverage.
The stock closed Wednesday at $479.23 and was trading at $418.83 by Thursday morning, June 4.
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