Broadcom’s AI Chip Revenue Is Accelerating. The Market Wants More.
just posted the strongest AI semiconductor numbers in its history. Yet on June 3, 2026, shares fell roughly 3% in after-hours trading. That disconnect is the story. Broadcom’s custom AI chip revenue hit $10.8 billion in the second fiscal quarter ended May 3, growing 143% year over year. Total revenue reached a record $22.19 billion, up 48% annually. Adjusted EPS came in at $2.44, topping the $2.40 analyst consensus. And still, the stock slipped. Understanding why reveals something important about how Broadcom is actually positioned heading into the second half of 2026.
The Software Miss Is a Real Signal, Not Noise
The market’s reaction had two triggers. First, total revenue came in $80 million below the LSEG consensus of $22.27 billion. Second, infrastructure software revenue posted $7.18 billion, missing the StreetAccount consensus of $7.32 billion. That segment includes VMware, which Broadcom acquired in…
