Broadcom Posts Record Revenue on AI Chip Demand, Outlook Disappoints
Broadcom reported record second-quarter revenue, driven by surging demand for custom AI accelerators. However, shares fell more than 5% in after-hours trading as AI semiconductor guidance for the third quarter came in below some investor expectations.
Key Numbers
Broadcom Inc (NASDAQ:AVGO) reported record second-quarter revenue on Wednesday, driven by surging demand for custom AI accelerators. However, shares fell more than 5% in after-hours trading as AI semiconductor guidance for the third quarter came in below some investor expectations.
Key Financial Results
| Metric | Q2 2025 | YoY Change |
|---|---|---|
| Revenue | $12.5B | +15% |
| Net Income | $3.8B | +12% |
| EPS | $2.45 | +10% |
Highlights from the Report
The company said record revenue was fueled by strong growth in the semiconductor segment, particularly custom AI accelerators for cloud computing customers.
Guidance
Broadcom forecast Q3 revenue between $11.5B and $12.0B, below the analyst consensus of $12.3B. It also guided for an adjusted gross margin of approximately 68%.
Stock Reaction
Shares fell 5.2% in after-hours trading to $145, after gaining 18% year-to-date.
What This Means for Investors
Despite a strong Q2, the weaker-than-expected guidance suggests a potential slowdown in semiconductor revenue growth. The focus remains on Broadcom's ability to sustain AI chip demand momentum.
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