Broadcom failed to impress the market with its revenue forecast. What about the stock?

Quarterly results of chipmaker Broadcom exceeded Wall Street forecasts. Revenue increased 29% year-over-year to $19.31 billion versus expectations of $19.18 billion, CNBC reports . Adjusted earnings per share came in at $2.05, while analysts had expected $2.03.

At the same time, the company's forecast for the current quarter disappointed investors, according to Bloomberg. Broadcom expects revenue to total $22 billion. On average, the market was expecting $20.5 billion, but some estimates exceeded $22 billion, according to data compiled by the agency. That's a signal that the chip maker is making slower progress in artificial intelligence computing than it would like, it notes.

Broadcom CEO Hock Tan said in a release that AI revenue more than doubled to $8.4 billion in the quarter, "driven by strong demand for specialized AI gas pedals and AI networking solutions." For the current quarter, the company expects AI semiconductor revenue of $10.7 billion.

Broadcom shares were up 0.5% in extended trading, but remained volatile, gaining or losing ground.

The subdued reaction reflects the very high bar of expectations that AI-related companies face in 2026. Investors have become more concerned about a possible bubble in AI spending, and even Nvidia's very strong reporting last month led to a sell-off in its shares, Bloomberg recalls.

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