Broadcom (AVGO) Stock Falls 7% Despite $22.2 Billion Revenue and AI Growth

Quick overview

Broadcom (AVGO) stock has failed to stop its recent losses and is also showing negative performance today. On June 2, just one day before its earnings report, the stock showed a very strong surge and touched its all-time high level of $495, but this increase was only short-lived, and then the stock fell back very sharply after the company shared its latest results on June 3, 2026. At the time we are writing this article, the stock is trading at 385.73, showing more than 7 percent losses on the day.

However, the reason for this decline was the very high expectations of the market from this company’s earnings report. There is no doubt that Broadcom showed a very strong earnings report, with almost total sales of $22.2 billion in this quarter, but people were expecting more than this, and because of that when their expectations were not met, the price fell very sharply. In addition, the company’s future guidance also disappointed people.

Apart from this, there are many other factors in the market that are negatively affecting this stock price, for example weakness in the whole tech industry, higher interest rates, and competition from NVIDIA, all of these things are preventing the stock from moving higher.

Strong Earnings But Market Disappointed

On June 3, the company released its Q2 2026 earnings report, which shows that the company made $22.2 billion in sales, which is 48 percent higher compared to last year. Its data center business, where it sells AI chips, recorded almost $10.8 billion in sales, which is a very large increase compared to last year, almost 143 percent higher. Its profit per share was also very strong. For the next quarter, the company expects $29.4 billion in sales and $16 billion in the AI business. For the full year, the company expects $56 billion in AI chip business sales in 2026, and over $100 billion in 2027. Now the problem is that despite such strong data, the market was not impressed because it was expecting even more than this.

Broadcom New Technology and Growth

Broadcom is also launching new products in Wi-Fi, broadband, and networking. These new products can further help the company grow. Recently, they have launched Wi-Fi 8 chips. The job of these chips is to give you faster and smarter home and business internet.

In addition to this, the company has also introduced a 50G PON gateway chip for super-fast fiber connections with built-in AI features. Not only this, but the company has also made new partnerships with big companies such as Samsung for new 5G + Wi-Fi 8 solutions that work well for wireless internet.

All these things keep this company unique and ahead of other companies in the market competition. And these things also help the company to increase sales and have a strong future.

Experts See Big Growth

Considering all the situations, experts are giving this stock a buy rating and the average price target of this stock has been set at $490 to $515, which means this stock’s price can go $50 higher in the coming time. Some experts have shown a high price target; they think this stock can go up to $630.

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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