Broadcom’s (AVGO) stock is down 15% after the chipmaker reported quarterly financial results that disappointed Wall Street.
The company announced earnings per share (EPS) of $2.44 U.S., which topped the $2.40 U.S. consensus expectation of analysts.
However, revenue in the period totaled $22.19 billion U.S., narrowly missing the $22.27 billion U.S. that Wall Street expected. Sales were up 48% from a year earlier.
At the same time, Broadcom didn’t raise its full-year target of $100 billion U.S. in artificial intelligence (A.I.) microchip sales, further dampening investor enthusiasm.
Management added that revenue in the current second quarter of 2026 will be about $29.4 billion U.S., ahead of the $28.53 billion U.S. expected by analysts.
The post-earnings drop in Broadcom shares comes after the stock has risen nearly 40% this year, crushing the Nasdaq’s 16% gain. The stock has grown ninefold since the end of 2022.
Broadcom helps other technology companies build custom microchips, offering intellectual property and other technologies that A.I. chips require.
The company said its A.I. revenue more than doubled in the most recent quarter to $10.8 billion U.S. A.I. revenue is expected to triple year-over-year in the current quarter to $16 billion U.S.
Over the past 12 months, AVGO stock has gained 84% to trade at $479.23 U.S. per share.
