Broadcom shares tumble 12% after earnings miss on AI‑chip revenue guidance

Broadcom reported strong overall quarter results, with total revenue of $22.2 billion up about 50% year‑on‑year and net profit rising 88% to $9.3 billion. However, the company forecast AI‑chip revenue of roughly $16 billion for the next quarter, well below analysts’ expectation of $17.2 billion. The guidance shortfall triggered a sharp sell‑off, sending the stock down 12% in after‑hours trading and wiping more than $300 billion from its market value.

The miss highlights competitive pressure in the data‑center and AI‑accelerator markets, where rivals such as Marvell are gaining ground. Broadcom still expects full‑year revenue of about $29.4 billion, an 84% increase from the prior year, but investors are now demanding clearer visibility on AI‑related sales.

The stock decline also reverberated across the broader semiconductor sector, with analysts noting that investors now weigh short‑term AI‑segment performance heavily alongside overall growth.