Broadcom (AVGO) Q3 AI Revenue Outlook Misses at $16B, Shares Drop

AI Summary

Broadcom (AVGO) reported a Q3 FY2026 AI semiconductor revenue outlook of $16 billion, below analyst expectations of $17.2 billion, resulting in a 14% drop in shares. The company achieved overall revenue of $22.19 billion, reflecting a 48% year-over-year increase, and AI revenue of $10.8 billion, a rise of 143%. Concurrently, Advanced Micro Devices (AMD) and NVIDIA (NVDA) saw their shares decline by 4% and 3%, respectively, contributing to a deeper selloff in the semiconductor sector due to concerns regarding Federal Reserve policy and impending mega-IPOs. Analysts indicate that these factors could lead to further liquidation of chip positions.