Shares of Broadcom are down 14% in Thursday morning trading, sinking to around ? after closing Wednesday at ?.23. The reversal follows the company’s fiscal Q2 2026 earnings release after the close on June 3. AVGO stock had been on a tear into the report, hitting fresh all-time highs and gaining 88% over the past year. That left expectations high heading into the results.
Broadcom beat expectations. Revenue came in at ?.19bn versus the ?.13bn consensus, and non-GAAP EPS hit ?.44 against ?.39 expected. Artificial Intelligence semiconductor revenue grew 143% year over year to ?.80bn, topping the company’s own forecast. Current-quarter total revenue guidance of ?.4bn also came in above the ?.61bn consensus. The problem sat in the Artificial Intelligence line. Third-quarter Artificial Intelligence chip sales were projected at ?bn, below analysts’ estimates of ?.2bn, and Broadcom didn’t raise its 2026 Artificial Intelligence semiconductor sales forecast. Broadcom was also downgraded to Neutral with a ? price target in a reported analyst note this morning.
The pain is spreading. Advanced Micro Devices is off 4% to around ?, and Intel is down 3% to near ?, even though neither name has company-specific news today. Both have run hard. AMD stock is up 153% year to date and 362% over the past year, leaving little cushion when sentiment turns. Intel stock has been an even bigger mover. INTC shares are up 205% YTD and 456% over the past year on its foundry and Artificial Intelligence inference traction. When the largest custom-silicon name signals a near-term Artificial Intelligence ceiling, extended peers tend to wear the read-through.
The bigger backdrop hasn’t changed. Hyperscaler Artificial Intelligence spending this year is estimated to reach ?bn. CEO Hock Tan reinforced the long runway on the call, saying Broadcom expects momentum to continue into fiscal year 2027 and reiterates Artificial Intelligence semiconductor revenue guidance to be in excess of ?bn. Broadcom also delivered ?.26bn in free cash flow in the quarter, per its 8-K filing. Investors can watch for whether Broadcom stock holds ?, and whether dip-buyers step in throughout the day. For AMD and Intel holders, the read-through question is whether Artificial Intelligence chip sentiment stabilizes or whether more extended names see continued profit-taking.
