By Harsh Chauhan
Publication Date: 2026-06-09 16:23:00
Shares of Broadcom (AVGO 3.78%) received a big jolt following the release of the company’s fiscal 2026 second-quarter results (for the three months ended May 3) on June 3. The chip designer missed Wall Street’s revenue expectations, and investors weren’t happy about the fact that it didn’t raise its guidance for next year.
Broadcom stock was down nearly 8% the following day. However, savvy investors can consider this pullback as a buying opportunity, especially considering that Broadcom is benefiting big time from the growing demand for custom artificial intelligence (AI) processors and networking chips.
Let’s look at the reasons why it makes sense to buy Broadcom stock following its latest slide.
Image source: The Motley Fool.
Broadcom couldn’t meet the market’s ambitious targets, but the bigger picture remains intact
Broadcom’s fiscal Q2 revenue increased 48% year over year to $22.2 billion. Its non-GAAP earnings per share increased at a stronger pace of 54% year over year to…
