By Alex Sirois
Publication Date: 2026-06-09 17:29:00
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At $396.60, Broadcom (NASDAQ:AVGO | AVGO Price Prediction) is a Hold. The stock just suffered its second-largest negative earnings day reaction in nine quarters, and the reason behind it deserves more attention than the headline number.
Broadcom designs custom AI accelerators, networking silicon, and infrastructure software for hyperscaler buildouts. Fiscal Q2 delivered strong results: revenue hit $22.19 billion, up 47.9% year over year, AI semiconductor revenue reached $10.8 billion, up 143%, and management guided Q3 to $29.4 billion in revenue with $16 billion in AI. The stock fell 12.59% on the day and 13.78% over the week anyway.
Why The Reaction Looked Like A Sentiment Reset
The bull case is straightforward. Bookings for AI semiconductors hit over $30 billion against $10.8 billion shipped, and CEO Hock Tan reiterated guidance for AI semiconductor revenue in excess of $100 billion in 2027. Named partnerships…
