Broadcom reported Q2 revenue below expectations and left its full-year AI chip sales forecast unchanged, triggering a...

Broadcom reported Q2 revenue below expectations and left its full-year AI chip sales forecast unchanged, triggering a 15% after-hours selloff that erased $285 billion in market cap Source 3. The miss came despite 48% year-over-year revenue growth, as elevated investor expectations were not met Source 7. CNBC noted Broadcom's stock had run hot ahead of earnings, and 'solid' results were insufficient for a market looking for beats like Snowflake or Dell Source 6. The negative sentiment spilled over to the broader chip sector, with Asian chipmakers Samsung and SK Hynix declining 4% and 7% respectively the next day Source 4. Bloomberg reported that the AI trade cooled as rotation accelerated Source 9. Broadcom CEO Hock Tan emphasized organic AI growth over M&A, but the unchanged AI guidance disappointed investors hoping for an upward revision Source 1. The earnings miss and guide suggest near-term headwinds for Broadcom and cast a shadow over AI infrastructure spending expectations, affecting hyperscalers like Google (a key Broadcom customer) and chip peers NVIDIA, AMD, Marvell, and Taiwan Semiconductor.