Broadcom Shares Plunge 15% on Disappointing AI Guidance
Broadcom (AVGO) shares fell over 15% after the company issued Q3 revenue guidance below analyst estimates, sparking a sell-off in the chip sector.
Broadcom (AVGO) shares plunged more than 15% on Thursday, June 4, 2026, after the company issued Q3 revenue guidance that fell short of analyst expectations, reigniting concerns about AI chip demand.
Key Financial Results
| Metric | Last Quarter | Analyst Estimates |
|---|---|---|
| Revenue | $12.5B | $13.2B |
| EPS | $2.45 | $2.80 |
No year-over-year comparisons were provided.
Highlights from the Release
Broadcom attributed the weak guidance to a temporary slowdown in orders from major data center customers, despite continued year-over-year growth. Some clients are delaying purchases ahead of new product launches.
Future Guidance
Broadcom expects Q3 revenue between $11.8B and $12.2B, well below the consensus estimate of $13.5B.
Impact on the Stock
The stock closed down 15.3%, its biggest single-day drop in two years. Other chip stocks, including NVIDIA (NVDA) and Texas Instruments (TXN), fell 3% to 5% in sympathy.
What This Means for Investors
While the guidance miss suggests a near-term slowdown, long-term AI chip demand remains robust. Investors should watch upcoming quarters to determine if the slowdown is temporary or structural.
Frequently Asked Questions
Found this useful? Share it