Broadcom shares shed $520B in market value after outlook disappoints

Broadcom just posted some of the strongest revenue numbers in its history. Investors sold the stock anyway.

The chip giant reported fiscal Q2 2026 revenue of $22.2 billion, up 48% from the same period a year ago. AI semiconductor revenue hit $10.8 billion for the quarter, a 143% year-over-year increase.

The guidance gap that started a $520B slide

For Q3 2026, Broadcom projected AI revenue of $16 billion. Analysts had penciled in roughly $17.2 billion. That $1.2 billion shortfall, against a backdrop of sky-high expectations, was enough to trigger one of the largest single-day destructions of market value in megacap history.

On June 4, shares fell approximately 12 to 15%, erasing somewhere between $280 billion and $340 billion in market capitalization in a single session. To put that in perspective, most S&P 500 companies are not worth $280 billion total. Broadcom lost that in a day.

The selling did not stop there. By late June, the stock was down more than 20% from its recent highs. The cumulative market cap loss since early June reached approximately $520 billion. The broader semiconductor sector shed roughly $1.3 trillion in market value during June.

Strong results, stronger expectations

The company reiterated its full-year 2026 AI revenue target of $56 billion and maintained its longer-term goal of surpassing $100 billion in AI semiconductor revenue by fiscal 2027.

As of early September 2026, AVGO shares were trading in the $365 to $370 range, down from a year’s peak of around $495, a decline of roughly 25% from the top.

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