GoKawiilBroadcom shares fall 5% despite earnings beat as Q4 revenue outlook disappoints
Broadcom topped Wall Street expectations for its latest quarter, with adjusted earnings of $3.32 per share and revenue of $29.59 billion, both above estimates, while net income more than tripled year-over-year to $13.09 billion. However, the company's fourth-quarter revenue forecast of $34.8 billion came in slightly below the $35.03 billion analysts anticipated, sending shares down 5% in after-hours trading.
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Broadcom has become a bellwether for the AI infrastructure buildout, supplying custom chips to Google, Meta, OpenAI and Anthropic, so any hint of slowing growth rattles investors betting heavily on continued AI capital spending. The stock's underperformance versus the S&P 500 this year despite strong fundamentals suggests the market is growing more skeptical of nosebleed valuations tied to AI demand, even as CEO Hock Tan reaffirmed multi-year, multibillion-dollar chip commitments from major tech clients.
- Broadcom beat both earnings and revenue estimates but issued Q4 guidance below Wall Street's forecast.
- The company is deepening AI chip partnerships with Google, Meta, OpenAI and Anthropic, including the custom Jalapeno chip and Google's Ironwood TPUs.
- Despite AI-driven growth, Broadcom stock has lagged the S&P 500 in 2026, rising only 6% versus the index's 12% gain.
Chip War" by Chris Miller — If Broadcom's AI-fueled surge has you curious how semiconductors became the world's most valuable technology, Chris Miller's Chip War traces the industry's rise and the global fight to control it. It's a readable, well-reported backdrop to the custom-chip deals now driving companies like Broadcom, Google and OpenAI.
See Chip War" by Chris Miller on Amazon → Affiliate link — we may earn a commission on purchases, at no extra cost to you. Product picked by AI based on this article; it is not a tested recommendation.Source: cnbc.com — Jordan Novet, 2026-09-02
Published there as: “Broadcom's stock drops 5% as weak guidance overshadows earnings beat”
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