Financial Performance and AI Growth
's Q2 earnings surpassed expectations with a 20% revenue increase to $15 billion and a 44% rise in adjusted earnings per share to $1.58, driven by a 46% surge in AI chip revenue to over $4.4 billion.
The company anticipates continued AI chip sales growth, targeting $5.1 billion in Q3, reflecting a 60% increase from the previous year. This growth is attributed to strong demand from hyperscale partners and the expansion of AI semiconductor applications.
Market Reactions and Analyst Perspectives
Despite favorable earnings and guidance, Broadcom's stock experienced a nearly 4% drop, potentially due to high investor expectations following significant stock gains.
Analysts responded positively, with multiple firms raising their price targets for Broadcom stock, citing strong demand for AI and optimism about the company's revenue growth trajectory into fiscal 2026.