Broadcom Shares Slip Post-Market Despite Strong Q2 Beat and Soaring AI Revenue

Broadcom Inc. (NASDAQ: AVGO) shares have fallen around 4.5% in after-hours trading on Wednesday after the chip giant reported its fiscal second-quarter 2026 results, even as the company delivered a beat on both earnings and revenue and issued blowout forward guidance.

Broadcom posted non-GAAP earnings per share of $2.44, topping the Wall Street consensus estimate of $2.40 — drawn from 37 analysts surveyed by Yahoo Finance — by roughly $0.04. Revenue came in at $22.19 billion, edging above the $22.11 billion consensus and surging 48% year-over-year, reflecting the company’s extraordinary AI-driven growth momentum.

The headline numbers, however, were eclipsed by a strong third-quarter outlook. Broadcom guided Q3 revenue to approximately $29.4 billion, representing 84% year-over-year growth. The after-hours move lower suggested some profit-taking on the “sell the news” dynamic that can follow even strong prints.

Central to the quarter’s story was the explosive expansion of Broadcom’s AI semiconductor segment. AI chip revenue reached $10.8 billion in Q2, surging 143% year-over-year and exceeding the company’s own prior forecast. CEO Hock Tan said momentum is accelerating, projecting AI semiconductor revenue to exceed $16 billion in Q3, representing more than 200% year-over-year growth, fuelled by surging demand for custom AI accelerators and AI networking infrastructure.

Adjusted EBITDA hit a record $15.24 billion, or 69% of revenue, up 52% from a year ago. Free cash flow also hit a record at $10.26 billion, or 46% of revenue. Broadcom also declared a quarterly dividend of $0.65 per share, payable June 30.

CFO Kirsten Spears noted that Q3 non-GAAP operating margins are expected to remain stable at approximately 67%, underscoring the company’s formidable operating leverage as it scales its AI and infrastructure software businesses.

AVGO shares closed at $479.23 on June 3, 2026, down $2.34 (-0.49%) on the day.