Broadcom Says AI Demand Is 'Insatiable'

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. Investor expectations had climbed sharply ahead of the report, with Broadcom gaining about $270 billion in market value in five trading sessions as enthusiasm around its AI business accelerated, according to Bloomberg. 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 ... Full story available on Benzinga.com