Broadcom just posted some of the strongest revenue numbers in its history. Investors sold the stock anyway.
The chip giant reported fiscal Q2 2026 revenue of $22.2 billion, up 48% from the same period a year ago. AI semiconductor revenue hit $10.8 billion for the quarter, a 143% year-over-year increase.
The guidance gap that started a $520B slide
For Q3 2026, Broadcom projected AI revenue of $16 billion. Analysts had penciled in roughly $17.2 billion. That $1.2 billion shortfall, against a backdrop of sky-high expectations, was enough to trigger one of the largest single-day destructions of market value in megacap history.
On June 4, shares fell approximately 12 to 15%, erasing somewhere between $280 billion and $340 billion in market capitalization in a single session. To put that in perspective, most S&P 500 companies are not worth $280 billion total. Broadcom lost that in a day.
The selling did not stop there. By late June, the stock was down more than 20% from its recent highs. The cumulative market cap loss since early June reached approximately $520 billion. The broader semiconductor sector shed roughly $1.3 trillion in market value during June.
Strong results, stronger expectations
The company reiterated its full-year 2026 AI revenue target of $56 billion and maintained its longer-term goal of surpassing $100 billion in AI semiconductor revenue by fiscal 2027.
As of early September 2026, AVGO shares were trading in the $365 to $370 range, down from a year’s peak of around $495, a decline of roughly 25% from the top.