By Ines Ferré
Publication Date: 2026-06-04 20:06:00
What happened: Broadcom (AVGO) stock declined roughly 12% on Thursday after the custom chip designer’s AI sales outlook missed estimates.
By the numbers: The company reported revenue of $22.19 billion, modestly exceeding the consensus estimate of $22.13 billion, although some analysts had anticipated an even stronger result. Earnings per share came in at $2.44, topping estimates of $2.39.
The company said it expects revenue for the current quarter to be $29.4 billion, compared with a consensus estimate of $28.61 billion.
Semiconductor revenue from artificial intelligence in the second quarter grew 143% year over year. However, AI chip sales for the third quarter were projected at $16 billion, below analysts’ estimates of $17.2 billion.
Additionally, the company did not raise its full-year AI semiconductor sales forecast.
“We expect this momentum to continue into fiscal year 2027 and reiterate our AI semiconductor revenue guidance to be in excess of $100…
