Broadcom AI Chip Maker Shares Plunge Over Forecast Miss, Triggering Global Market Sell‑off

Broadcom reported record second‑quarter revenue of $22.2 billion, a 48% year‑on‑year rise, and a 54% jump in adjusted earnings per share to $2.44. Despite the strong results, the company did not raise its long‑term AI revenue target and gave a more modest outlook for AI chip sales in the third quarter, prompting investors to sell the stock. The shares fell more than 12% in after‑hours trading, erasing over $300 billion in market value. CEO Hock Tan said demand for AI remains “insatiable” and reiterated an annual AI semiconductor revenue goal of $56 billion, forecasting Q3 consolidated revenue of $29.4 billion.

The earnings surprise rippled through markets worldwide. Asian indexes opened lower, with the MSCI Asia index down 1.6%, South Korea’s KOSPI dropping 1.8% and major chip makers such as Samsung Electronics and SK Hynix slipping 2‑4%, while LG Electronics fell nearly 14%. Taiwan’s server assemblers Hon Hai Precision and Wistron fell about 4% and 8% respectively. In the United States, the Dow Jones rose 1.08%, the S&P 500 slipped 0.18%, and the Nasdaq fell 0.83% as semiconductor stocks were pressured.