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Broadcom Shares Drop 20% After Missed AI Revenue Guidance

6/11/2026

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Summary

Story summary

Broadcom's shares fell 20% from their high after the company posted Q2 revenue of $22.19 billion, up 48%, with AI semiconductor sales rising 143% to $10.8 billion, and guided Q3 AI chip revenue to $16 billion, below expectations of $16.36-$17.2 billion.
Broadcom announced a $35 billion AI financing platform with Apollo and Blackstone to fund 20 gigawatts of compute.
Analysts upgraded Broadcom to Buy, lifting price targets above $550 and noting a P/E near 21.

History

Historical Context

April 5 2016 Nvidia introduced the Pascal-based Tesla P100, delivering up to 720 GB/s memory bandwidth and sparking rapid growth in AI accelerators. The follow-up Volta architecture, announced May 10 2017 with the V100, expanded tensor-core performance, cementing GPUs as core AI hardware. In 2024 Broadcom launched a multibillion-dollar AI financing platform, echoing the capital surge first triggered by Nvidia’s 2016 launch.

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Story summary

Broadcom's shares fell 20% from their high after the company posted Q2 revenue of $22.19 billion, up 48%, with AI semiconductor sales rising 143% to $10.8 billion, and guided Q3 AI chip revenue to $16 billion, below expectations of $16.36-$17.2 billion.
Broadcom announced a $35 billion AI financing platform with Apollo and Blackstone to fund 20 gigawatts of compute.
Analysts upgraded Broadcom to Buy, lifting price targets above $550 and noting a P/E near 21.

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