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Broadcom Slides 13% on Q2 Miss, AI Forecast Lag

6/4/2026

Summary

Broadcom Misses Estimates

Broadcom posted Q2 revenue of $22.19 billion, missing the $22.27 billion estimate, causing its shares to fall 13 percent.
CEO Hock Tan kept 2027 AI-chip sales target at $100 billion and forecast $16 billion of AI chip revenue, below $16.36 billion estimate.
Broadcom projected Q3 revenue of $29.4 billion, above the $28.54 billion while semiconductor revenue rose to $10.8 billion, a 143 percent increase.
Apollo Global Management and Blackstone are arranging $36 billion of debt to help Anthropic buy Google chips.

Summary

Broadcom AI Reset

Broadcom’s AI chips are custom ASICs that trade raw power for efficiency and lower cost versus Nvidia GPUs.
Futurum Group CEO Daniel Newman called the earnings release an “expectations reset” and reaffirmed a plan to ship 10 GW of AI compute capacity by 2028.
The stock, up 38% YTD, dropped more than 12% after-hours, prompting Motley Fool’s 2026 top-ten list to exclude Broadcom despite its holdings in Alphabet, Meta and Nvidia.

Summary

Anthropic Orders

Anthropic ordered $10 billion of Broadcom AI chips, highlighted by CEO Hock Tan at Digital X.
Broadcom supplies IP and technology that enable firms to design custom AI chips.
Broadcom’s shares are up about 40% this year and nearly ninefold since late 2022.
Tan addressed Broadcom’s AI-chip strategy at Digital X in Cologne, Germany on Sept. 13, 2022.
Net income rose 88% YoY to $9.31 billion ($1.91 per share).

History

Historical Context

Nvidia’s early-2000s billion-dollar investment in CUDA turned GPUs into general-purpose AI accelerators; by 2025 the company held over 80% of the AI-chip market and powered Google’s 2009 deep-learning breakthrough. Nvidia reported $10.9 billion revenue in 2020, reflecting AI demand. This precedent shows how new financing for ASICs can reshape semiconductor concentration and accelerate next-generation compute capacity.

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Broadcom Misses Estimates

Broadcom posted Q2 revenue of $22.19 billion, missing the $22.27 billion estimate, causing its shares to fall 13 percent.
CEO Hock Tan kept 2027 AI-chip sales target at $100 billion and forecast $16 billion of AI chip revenue, below $16.36 billion estimate.
Broadcom projected Q3 revenue of $29.4 billion, above the $28.54 billion while semiconductor revenue rose to $10.8 billion, a 143 percent increase.
Apollo Global Management and Blackstone are arranging $36 billion of debt to help Anthropic buy Google chips.

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