{"slug": "broadcoms-ai-chip-forecast-falls-short-shares-tumble-over-13-wiping-out-250b-in", "title": "Broadcom’s AI chip forecast falls short, shares tumble over 13% wiping out $250B in market value", "summary": "Broadcom shares plunged over 13% in after-hours trading on June 3, wiping out more than $250 billion in market value, after the company's third-quarter AI chip revenue forecast of $16 billion fell short of Wall Street expectations ranging from $16.36 billion to $17.2 billion. The sell-off came despite the chipmaker reporting a 143% year-over-year surge in AI semiconductor revenue to $10.8 billion for the fiscal second quarter of 2026. The miss raises concerns about the pace of the broader AI infrastructure buildout, as Broadcom is a key supplier of custom AI accelerators to hyperscalers like Google, Meta, and OpenAI.", "body_md": "# Broadcom’s AI chip forecast falls short, shares tumble over 13% wiping out $250B in market value\n\nDespite posting 143% year-over-year AI revenue growth, Broadcom's third-quarter guidance missed Wall Street's lofty expectations, triggering a massive sell-off.\n\nBroadcom just reported a quarter where its AI semiconductor revenue surged 143% year over year to $10.8 billion. The reward for that performance? A stock drop of more than 13% in after-hours trading, erasing over $250 billion in market value.\n\n## What actually happened\n\nBroadcom posted fiscal second-quarter 2026 results on June 3, delivering overall revenue of $22.19 billion. The AI semiconductor segment came in at $10.8 billion, slightly beating the company’s own internal guidance.\n\nThe company projected third-quarter AI chip revenue of $16 billion. Wall Street consensus estimates had ranged from roughly $16.36 billion to $17.2 billion. Broadcom’s forecast missed the low end of analyst expectations.\n\nShares dropped 13% to 15% in after-hours trading on June 3 and 4, with the last comparable decline occurring in January 2025. A $16 billion quarterly AI revenue forecast would represent roughly a 48% jump from the $10.8 billion just reported.\n\n## The expectations game\n\nCEO Hock Tan highlighted demand from Anthropic, Google, Meta, and OpenAI. Tan also reiterated the company’s long-term target of surpassing $100 billion in AI semiconductor revenue by 2027, which would require sustaining roughly $25 billion per quarter. The company also disclosed plans to ship more than 10 gigawatts of AI compute capacity in 2027, with growth expected to continue into 2028.\n\n## Why this matters beyond Broadcom\n\nBroadcom is one of the primary suppliers of custom AI accelerators that hyperscalers use instead of or alongside Nvidia’s GPUs. The $250 billion in market value that evaporated raises questions about whether the broader AI infrastructure buildout is proceeding at the pace the market has been pricing in.\n\nBroadcom’s forecast was roughly $360 million to $1.2 billion below analyst expectations, depending on which estimate you use. That gap amounts to roughly 2% to 7% of the forecasted figure. The stock moved 13% or more.\n\n**Disclosure:** This article was edited by Editorial Team. For more information on how we create and review content, see our\n\n[Editorial Policy](https://cryptobriefing.com/editorial-policy/).", "url": "https://wpnews.pro/news/broadcoms-ai-chip-forecast-falls-short-shares-tumble-over-13-wiping-out-250b-in", "canonical_source": "https://cryptobriefing.com/broadcom-ai-chip-forecast-shares-tumble/", "published_at": "2026-06-04 19:57:37+00:00", "updated_at": "2026-06-04 20:57:09.861470+00:00", "lang": "en", "topics": ["ai-chips", "artificial-intelligence", "ai-infrastructure"], "entities": ["Broadcom", "Hock Tan", "Anthropic", "Google", "Meta", "OpenAI"], "alternates": {"html": "https://wpnews.pro/news/broadcoms-ai-chip-forecast-falls-short-shares-tumble-over-13-wiping-out-250b-in", "markdown": "https://wpnews.pro/news/broadcoms-ai-chip-forecast-falls-short-shares-tumble-over-13-wiping-out-250b-in.md", "text": "https://wpnews.pro/news/broadcoms-ai-chip-forecast-falls-short-shares-tumble-over-13-wiping-out-250b-in.txt", "jsonld": "https://wpnews.pro/news/broadcoms-ai-chip-forecast-falls-short-shares-tumble-over-13-wiping-out-250b-in.jsonld"}}