Overview
- Broadcom reported record fiscal second-quarter results with revenue around $22.8 billion and net income of about $9.3 billion.
- Semiconductor revenue tied to AI climbed 143% year over year to $10.8 billion and was the main driver of the quarter's growth.
- Management kept a $100 billion fiscal‑2027 AI revenue target and guided AI chip sales for the next quarter to roughly $16 billion.
- Broadcom warned gross margin could fall from 77.1% in Q2 to about 74% in Q3 because a larger share of sales will be lower‑margin AI chips.
- The stock pulled back after the report, falling about 13% the next day and roughly 22% from its peak as investors weighed valuation and execution risks tied to large cloud orders and delivery capacity.