Broadcom just posted strong Q2 results and signaled big AI growth ahead. Revenue hit $15 billion, up 20% year-over-year, beating estimates by a hair. Adjusted EPS climbed 44% to $1.58, again ahead of expectations. Adjusted EBITDA jumped 35% to $10 billion, beating consensus.
Yet shares dropped 4% in after-hours, sliding below $249. The stock soared nearly 78% since April 4, so some profit-taking was expected.
AI sales hit $4.4 billion — a 46% jump year-over-year. Custom AI accelerator revenue increased double digits, while AI networking revenue more than doubled, now making up 40% of total AI revenues. CEO Hock Tan expects AI growth to stay strong into fiscal 2026. 
"These partners are still unwavering in their plan to invest despite these certain economic environment," Tan said.
"In fact, what we’re seeing recently is that they are doubling down on inference in order to monetize their platforms. And reflecting this, we may actually see an acceleration of [custom chip] demand into the back half of 2026 to meet urgent demand for inference."
Broadcom’s AI customers include Alphabet, Meta, and ByteDance, with four more prospects in the pipeline.
Non-AI semiconductor revenue dipped 5% to $4 billion, still near bottom according to Tan. Infrastructure software, boosted by VMware’s subscription shift, grew 25% to $6.6 billion with a 93% gross margin.
Broadcom raised Q3 revenue guidance to $15.8 billion, expecting 21% growth overall. AI revenue forecasted to jump 60% to $5.1 billion.
The company returned over $7 billion to shareholders in Q2 via buybacks and dividends.
Shares are on track to climb higher, but expect consolidation after this massive run. The AI accelerator and networking pipeline remains robust, fueling optimism for Broadcom’s next chapter.
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