Broadcom stock falls after earnings despite strong AI revenue growth

Broadcom's share price fell between 5 and 14 percent after the company published its second-quarter results in early June 2026. The results were actually very strong. Sales reached $22.2 billion, up 48 percent from the same period last year. Revenue from AI chips more than doubled, rising 143 percent to $10.8 billion. However, investors had hoped for higher targets. The company kept its AI revenue forecast unchanged, and some felt the outlook for future AI sales was weaker than expected. This disappointed the market. Broadcom's stock has still risen around 400 percent over the past three years. Analysts mostly rate it a strong buy, and they expect earnings to grow 76 percent in fiscal 2026.