Broadcom posted record quarterly revenue, but a gap between its AI chip guidance and analyst expectations triggered one of the largest single-day market-value losses in megacap history. The stock has now shed roughly $520 billion in market cap since early June, even as the company reiterated its long-term AI revenue targets.
The guidance gap that started a $520B slide
Broadcom reported fiscal Q2 2026 revenue of $22.2 billion, up 48% from the same period a year ago, with AI semiconductor revenue reaching $10.8 billion for the quarter. Investors sold the stock anyway.
For Q3 2026, the company projected AI revenue of $16 billion, against analyst estimates of roughly $17.2 billion. That gap, against a backdrop of sky-high expectations, was enough to trigger one of the largest single-day destructions of market value in megacap history.
On June 4, shares fell approximately 12 to 15%, erasing somewhere between $280 billion and $340 billion in market capitalization in a single session. Most S&P 500 companies are not worth $280 billion total — Broadcom lost that much in a day.
Selling continued through June
The decline did not stop there. By late June, the stock was down more than 20% from its recent highs. The cumulative market cap loss since early June reached approximately $520 billion, and the broader semiconductor sector shed roughly $1.3 trillion in market value during June as well.
Long-term targets unchanged
Broadcom reiterated its full-year 2026 AI revenue target of $56 billion and maintained its longer-term goal of surpassing $100 billion in AI semiconductor revenue by fiscal 2027. As of early September 2026, AVGO shares were trading in the $365 to $370 range, down from a year's peak of around $495. That marks a decline of roughly 25% from the top.
Source: Crypto Briefing
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