On June 10, Broadcom declined 3.52% in regular trading, trading at $376.215/share with trading volume of $1.304 billion, as the stock continues to face selling pressure following its fiscal Q2 earnings report released on June 3.
The ongoing weakness stems from Broadcom's AI chip revenue guidance falling short of elevated market expectations. The company guided Q3 AI semiconductor revenue of $16 billion, below analysts' average estimate of $17.2 billion, while CEO Hock Tan declined to raise the full-year AI chip sales target above $100 billion for fiscal 2027, opting to merely reaffirm existing guidance. Prior to the earnings release, Broadcom's market cap had surged approximately $270 billion in just five trading days, setting an extremely high bar for results.
Despite the selloff erasing over $286 billion in market value on the initial post-earnings session alone, several Wall Street firms including Citi and Deutsche Bank have characterized the pullback as a buying opportunity, with Deutsche Bank raising its target to $515 and projecting fiscal 2027 AI revenue of $125 billion. Macquarie, however, downgraded the stock to Neutral.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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