Nvidia next? Broadcom's value dropped by more than $440 billion as it posts disappointing forward outlook,…
- Broadcom shares plummet after it reports earnings beat for Q2 2026
- The company's market cap shrank a mammoth 19% across two sessions after its earnings report was scrutinized by Wall Street, with its AI chip sales outlook being notably softer at $16 billion versus $17.2 billion for Q3
- The behavior may indicate a frothy AI market, where investors continue to obsess over future guidance and valuations versus current performance
Broadcom's Q2 2026 earnings report, by all means, reads like that of a company that is gearing up to benefit from a splurge in AI spending across the next decade.
It posted record revenue, tripling its AI chip business year-on-year and topping its Q2 earnings-per-share (EPS) guidance.
All of this, however, failed to satisfy investors seeking details on where the company intended to continue building on its explosive growth trajectory later this year.
A market accustomed to 'beat-and-raise' AI forecasts
The...
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