Investor Scrutiny

Broadcom’s Q2 earnings revealed revenue slightly below expectations and no upward revision to its AI chip sales target, causing a 15% stock drop. Despite strong year-over-year growth driven by custom AI chip demand, investors are scrutinizing the company’s ambitious $100 billion AI sales forecast. Broadcom clarified its focus on “chips only” and anticipates AI revenue tripling this quarter, but warned of staggered deliveries. The infrastructure software segment also saw mixed results.