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.

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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.