Broadcom Q2 revenue falls short as shares drop over 11%
Broadcom just reported $22.19 billion in Q2 revenue, falling a bit short of what analysts predicted ($22.27 billion).
This small miss comes as competition heats up: NVIDIA is dominating the AI chip scene, and Marvell Technology is making big moves in custom chips.
After the news, Broadcom's stock dropped more than 11% in after-hours trading.
Broadcom AI semiconductor revenue up 143%
Even with these challenges, Broadcom is still a major supplier for tech giants like Meta and Google.
Its AI semiconductor revenue grew 143% year-over-year this quarter to $10.8 billion, thanks to surging demand for custom AI processors and networking gear.
Supply chain issues at partners like TSMC have slowed production a bit, but Broadcom expects its total Q3 revenue to hit $29.4 billion, above Wall Street's forecast, as the rush for AI tech continues across cloud computing and data centers.