Broadcom Inc. (NASDAQ:AVGO) stock fell in premarket trading Thursday after the chipmaker reported fiscal second-quarter 2026 results that topped earnings estimates but failed to satisfy Wall Street’s elevated expectations for artificial intelligence growth.

While the company delivered record profitability, accelerating AI revenue and a bullish third-quarter outlook, investors focused on what Broadcom did not do: raise its long-term AI revenue target.

With AI-related stocks priced for increasingly aggressive growth, Broadcom’s decision to maintain its forecast rather than lift it triggered profit-taking across the semiconductor sector.

Earnings Snapshot

Broadcom reported second-quarter revenue of $22.19 billion, up 48% from a year earlier but slightly below analyst estimates of $22.27 billion. Adjusted earnings were $2.44 per share, topping Wall Street expectations of $2.40 per share.

The company said growth was driven by continued strength in artificial intelligence semiconductor demand.

Operating margin reached a record 67.3%, expanding 200 basis points from a year earlier. Adjusted EBITDA totaled $15.2 billion, or 69% of revenue, exceeding company guidance.

Free cash flow reached a record $10.3 billion, representing 46% of revenue. Broadcom ended the quarter with $19.6 billion in cash and cash equivalents.

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