Broadcom Q2 earnings rise 48% on AI chip surge, stock drops 15% on Q3 miss
Broadcom reported Q2 revenue up 48% to $22.2 billion and net income up 88% to $9.31 billion, but shares fell roughly 15% after the company guided to $16 billion in Q3 AI revenue, below Street expectations [1][2].
Broadcom reported second-quarter revenue up 48% year-over-year and net income up 88% to $9.31 billion, or $1.91 per share, driven by custom AI chip orders from Alphabet, Anthropic, Meta, and OpenAI [1][2]. The semiconductor segment accounted for 49% of total sales and posted 143% year-over-year growth [1]. Net income increased from $4.97 billion in the prior-year quarter, reflecting accelerating demand for application-specific integrated circuits used in cloud AI workloads [2].
AI orders exceeded $30 billion during the quarter—triple the revenue shipped—extending Broadcom's revenue visibility through 2028 under multi-year contracts with the major cloud and foundation-model providers [1]. The backlog underscores the company's embedded position in hyperscaler capex cycles tied to large-language-model training and inference infrastructure.
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