Key Stats for Broadcom Stock
- Pre-market price change for Broadcom stock: -14%
- $AVGO Share Price as of Jun. 3: $479
- 52-Week High: $495
- $AVGO Stock Price Target: $487
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What Happened?
Broadcom (AVGO) stock fell sharply after the company reported Q2 fiscal 2026 results that came in just short on revenue.
- Sales hit $22.19 billion, a touch below the $22.27 billion analysts expected.
- Adjusted EPS of $2.44 actually beat the $2.40 estimate.
So why the sell-off? The real disappointment was guidance.
- Investors wanted CEO Hock Tan to raise the full-year AI chip target.
- Instead, he stuck to the existing $100 billion forecast for 2027.
- When a stock is priced for perfection, holding steady can feel like bad news.
Software added to the pressure. Broadcom’s infrastructure software unit, built largely around VMware, brought in $7.18 billion. That missed the $7.32 billion analysts wanted, even though it grew 9% from a year ago.
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What the Market Is Telling Us About Broadcom Stock
Step back, and the business is firing on all cylinders.
- Revenue jumped 48% year-over-year.
- AI chip sales more than doubled to $10.8 billion.
- Net income climbed 88% to $9.31 billion.
- Q3 guidance of $29.4 billion topped the $28.53 billion analysts expected.
- Tan named six core AI chip customers, including Google, Meta, Anthropic, and OpenAI.
- He expects AI revenue to triple in the current quarter to $16 billion.
- Broadcom also has over $30 billion in AI bookings against just $10.8 billion shipped, with visibility now stretching all the way to 2028.
So why is Broadcom stock down 14%? This is a classic case of strong results meeting sky-high expectations. The company didn’t stumble.
But after Broadcom stock rallied nearly 40% this year and multiplied almost ninefold since end of 2022 when the ChatGPT boom began, investors were hoping for a bigger surprise.
One other note: Tan said Broadcom will sell “chips only” rather than complete integrated AI systems. That shift may have spooked some investors looking for a larger revenue opportunity per deal.
For long-term investors, the picture behind Broadcom stock looks intact. Demand is described as insatiable, customers are committing years in advance, and margins remain near record levels. The drop looks more about expectations than fundamentals.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
