By Ines Ferré
Publication Date: 2026-06-04 01:56:00
What happened: Broadcom (AVGO) stock declined 12% in after-hours trading on Wednesday 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 AI semiconductor sales forecast for 2026.
“We expect this momentum to continue into fiscal year 2027 and reiterate our AI semiconductor revenue guidance to be in…
