How to Trade Broadcom After Fiscal Q2 2026 Earnings
June 08, 2026 13:50
Broadcom Inc. (NASDAQ: AVGO) has quietly become one of the most important companies in the artificial intelligence supply chain. Headquartered in Palo Alto, California, the company designs custom AI accelerator chips for some of the world's largest cloud operators. It also operates an infrastructure software business, with the VMware cloud platform (acquired in 2023) serving as one of its core products.
The company recently reported its results for the second quarter of fiscal year 2026. Here is a closer look at its performance and what analysts are forecasting for the stock.
The information in this article is provided for educational purposes only and does not constitute financial advice. Consult a financial advisor before making investment decisions.
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Broadcom's Fiscal Q2 2026 Earnings Performance Summary
Key Takeaways
- Total revenue reached $22.19 billion, up 48% year-on-year, driven by accelerating growth in AI semiconductor revenue. However, the figure came in slightly below analyst expectations of $22.27 billion.
- Profitability reached record levels. GAAP (Generally Accepted Accounting Principles) net income rose 88% YoY to $9.31 billion, while non-GAAP net income, which excludes stock-based compensation, acquisition-related amortisation, and restructuring charges, grew 55% YoY to $12.07 billion.
- Free cash flow, the cash the business generates after funding its own capital expenditure, reached $10.26 billion for the quarter, up 60% YoY.
- AI semiconductor revenue within the Semiconductor Solutions segment reached $10.8 billion, up 143% YoY and above management's own forecast. CEO Hock Tan noted that Broadcom has six core custom chip customers, including Google, Anthropic, Meta, and OpenAI. Here are more insights on segment-wise revenue.
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- Semiconductor Solutions, which designs custom AI accelerators (XPUs), networking chips, broadband components, and wireless connectivity silicon, generated $15.01 billion, up 79% YoY and representing 68% of total revenue.
- Infrastructure Software, which includes the VMware cloud platform, mainframe solutions, and enterprise security tools, contributed $7.18 billion, up 9% YoY. This fell short of the $7.32 billion analysts had expected.
- On the outlook, management guided for third-quarter fiscal 2026 revenue of approximately $29.4 billion, an increase of 84% YoY. AI semiconductor revenue for Q3 is expected to reach $16 billion, up over 200% YoY.
Source: Broadcom Fiscal Q2 2026 Press Release and CNBC report
Broadcom's 12-Month Analyst Stock Price Forecast
According to 28 Wall Street analysts, polled by TipRanks, offering a 12-month stock price forecast for Broadcom over the past 3 months:
- Buy Ratings: 24
- Hold Ratings: 4
- Sell Ratings: 0
- Average Price Target: $509.84
- High Price Target: $630.00
- Low Price Target: $390.00
Trading Strategy Example: Broadcom Inc.
The following trading examples are for educational purposes only and do not constitute investment advice. Investors should conduct independent research before making trading decisions. An example trading idea for the Broadcom share price could be as follows:
Remember, markets are volatile, and Broadcom's share price can fluctuate and may even trend lower. While the company beat earnings per share, revenue came in slightly below expectations, and the stock fell approximately 15% the session after results.
Infrastructure software revenue missed analyst estimates, and management's decision not to raise its closely watched $100 billion fiscal 2027 AI revenue target weighed on sentiment. Broadcom shares had already rallied approximately 40% year-to-date ahead of the results, which left little margin for anything short of exceptional forward guidance.
More broadly, Broadcom's revenue concentration is notable. The company derives the majority of its revenue from its Semiconductor Solutions segment, which accounted for 68% of total revenue this quarter. Any slowdown in AI infrastructure spending by its major cloud customers could directly affect Broadcom's growth trajectory.
How to Buy Broadcom Stock in 4 Steps
- Open an account with Admirals and complete the onboarding process to access the dashboard.
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- Search for your stock in the search window at the top.
- Input your entry, stop-loss and take profit levels in the trading ticket.
Do You See the Broadcom Stock Price Moving Differently?
If you believe there is a higher chance that the share price of Broadcom will move lower, then you can also trade short using CFDs (Contracts for Difference). However, these have higher associated risks and are not suitable for all investors. Learn more about CFDs in this How to Trade CFDs article.
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