Broadcom stock plunges on weak software sales, unchanged AI chip forecast for the year

Cnbc · Jun 03, 2026 · 530 words · By Kif Leswing

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What to know about Broadcom stock plunges on weak software sales, unchanged AI chip forecast for the year

Broadcom reported weaker-than-expected revenue in its fiscal second-quarter earnings report on Wednesday after the bell.

Claims checked 23

Techniques found 0

Topics 0

Coverage spectrum

Coverage gap: Low Left coverage

Left0%

Center75%

Right25%

4 sources compared across this story cluster. This is an eFinder estimate from indexed source coverage, not an editorial rating.

What happened

Broadcom reported weaker-than-expected revenue in its fiscal second-quarter earnings report on Wednesday after the bell.

Why it matters

The stock was down about 15% on Thursday on disappointment that CEO Hock Tan didn't raise the company's full-year target of $100 billion in artificial intelligence chip sales.

Common ground

Here's how the chipmaker did versus LSEG consensus estimates: - Earnings per share: $2.44, adjusted, versus $2.40 estimated - Revenue: $22.19 billion versus $22.27 billion estimated Revenue climbed 48% from $15 billion in the same quarter a year earlier,…

Perspective signals

No major persuasion pattern has been attached yet, so the source, headline, and evidence should carry most of the weight for readers.

Follow-up questions

What concrete event or decision sits underneath the headline: Broadcom stock plunges on weak software sales, unchanged AI chip forecast for the year?
What evidence would most clearly confirm or weaken the claim that Revenue climbed 48% from $15 billion in the same quarter a year earlier?
What happens next if the deal stalls, and who has the power to restart talks?

open_in_new Read the original article: https://www.cnbc.com/2026/06/03/broadcom-avgo-earnings-report-q2-2026.html

fact_checkClaims Checked

eFinder analyzed this article and checked 23 claims against available evidence, cross-references, web search, and Wikipedia. Here is what the fact-checking layer found.

schedule Pending 13

check_circle Corroborated 5

info Single Source 3

help Insufficient Evidence 2

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Claim 1: “Revenue climbed 48% from $15 billion in the same quarter a year earlier”

CORROBORATED

Multiple sources confirm revenue climbed 48% from $15 billion in the same quarter a year earlier.

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web search NEUTRAL — Jun 4, 2026 ... Broadcom's second quarter adjusted earnings were $2.44/share, with revenue up 48% to $22.19 billion. Shares fell 6.1% after guidance. Second ...
https://www.barrons.com/articles/broadcom-earnings-stock-pri…

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web search NEUTRAL — "Q2 consolidated revenue grew 48% year-over-year to a record $22.2 billion . Adjusted EBITDA increased 52% year-over-year to a record $15.2 billion , ...
https://investors.broadcom.com/news-releases/news-release-de…

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web search NEUTRAL — Jun 4, 2026 ... Revenue climbed 48% from $15 billion in the same quarter a year. The company said revenue this quarter will be about $29.4 billion, versus ...
https://www.reddit.com/r/TheRaceTo10Million/comments/1tw4s4c…

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Claim 2: “reiterate our AI semiconductor revenue guidance to be in excess of $100 billion”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

info

Claim 3: “The company said revenue this quarter will be about $29.4 billion, versus $28.53 billion expected by Wall Street analysts.”

SINGLE SOURCE

The projection of $29.4 billion is reported by one source, but the specific analyst expectation of $28.53 billion is not corroborated by other provided evidence.

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web search NEUTRAL — For the third quarter of fiscal 2026, Broadcom expects revenues of approximately $29.4 billion, indicating 84% year-over-year growth. The company expects non-GAAP operating income and adjusted EBITDA …
https://finance.yahoo.com/markets/stocks/articles/broadcom-i…

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web search NEUTRAL — The company has accumulated a $638 billion backlog of business, which is equal to about eight years of revenue at the current annual run rate.
https://www.fool.com/investing/2026/07/02/this-ai-infrastruc…

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web search NEUTRAL — Analysts had forecast EPS for the fourth quarter at $1.24 on revenues of $21.84 billion. In a nutshell, Target’s fourth-quarter EPS estimate is mostly lower than the consensus and the highly competiti…
https://247wallst.com/RETAIL/2017/11/18/WHY-ANALYSTS-ARE-TAK…

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Claim 4: “He said the company expected AI revenue to triple in the current quarter to $16 billion.”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

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Claim 5: “That revenue topped a StreetAccount estimate of $14.72 billion.”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

help

Claim 6: “topping the Nasdaq's 16% gain.”

INSUFFICIENT EVIDENCE

No evidence was found in the provided search results regarding the Nasdaq's 16% gain or Broadcom's relative performance to it.

schedule

Claim 7: “AI revenue more than doubled in the second quarter on an annual basis to $10.8 billion”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

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Claim 8: “The stock was down about 15% on Thursday”

CORROBORATED

Multiple sources report a significant drop on Thursday, June 4, 2026, with one source specifically citing a 15% fall at market open and another citing roughly 12%.

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wikipedia NEUTRAL — Eversource Energy is a publicly traded, Fortune 500 energy company headquartered in Springfield, Massachusetts with additional corporate offices in Hartford, Connecticut, and Boston, Massachusetts, wi…
https://en.wikipedia.org/wiki/Eversource_Energy

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wikipedia NEUTRAL — The following is a timeline of the first presidency of Donald Trump during the first quarter of 2018, from January 1 to March 31, 2018. For a complete itinerary of his travels, see List of presidentia…
https://en.wikipedia.org/wiki/Timeline_of_the_first_Trump_pr…

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web search NEUTRAL — Jun 4, 2026 ... Shares of Broadcom fell 15% at market open, on track to wipe out about $300 billion in market cap. May be an image of text that says 'yahoo!
https://www.facebook.com/yahoofinance/posts/shares-of-broadc…

+ 2 more evidence sources

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Claim 9: “much of it acquired through its purchase of VMWare in 2023.”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

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Claim 10: “Broadcom reported weaker-than-expected revenue in its fiscal second-quarter earnings report on Wednesday after the bell.”

CORROBORATED

Multiple independent web sources confirm Broadcom reported weaker-than-expected revenue in its fiscal Q2 report on June 3, 2026.

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web search NEUTRAL — Jun 3, 2026 ... Broadcom reported weaker-than-expected revenue in its fiscal second-quarter earnings report. The stock slid in extended trading.
https://www.facebook.com/cnbc/posts/broadcom-reported-weaker…

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web search NEUTRAL — Jun 3, 2026 ... The company reported earnings per share (EPS) of $1.60, beating analysts' expectations. The semiconductor segment contributed $8.2 billion in ...
https://www.facebook.com/investorsbusinessdaily/posts/broadc…

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web search NEUTRAL — Jun 3, 2026 ... Chipmaker Broadcom missed Wall Street expectations for second-quarter revenue ... below estimates of $16.36 billion, according to analysts ...
https://www.reuters.com/world/china/broadcom-forecasts-quart…

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Claim 11: “Tan said on an earnings call with analysts that Broadcom has six core custom chip customers, including Anthropic, Google, Meta and OpenAI”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

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Claim 12: “Earnings per share: $2.44, adjusted, versus $2.40 estimated”

SINGLE SOURCE

Only one specific source mentions the adjusted earnings of $2.44 per share. Other sources mention $1.60 or do not specify the EPS figure.

menu_book

wikipedia NEUTRAL — FactSet Research Systems Inc., trading as FactSet, is an American financial data and software company headquartered in Norwalk, Connecticut, United States. The company provides integrated data and sof…
https://en.wikipedia.org/wiki/FactSet

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wikipedia NEUTRAL — Gen Digital Inc. (formerly Symantec Corporation and NortonLifeLock Inc.) is a multinational software company co-headquartered in both Tempe, Arizona (USA) and Prague, Czech Republic (EU). The company…
https://en.wikipedia.org/wiki/Gen_Digital

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wikipedia NEUTRAL — The Russell 3000 Index is a capitalization-weighted stock market index that seeks to be a benchmark of the entire U.S. stock market. It measures the performance of the 3,000 largest publicly held comp…
https://en.wikipedia.org/wiki/Russell_3000_Index

+ 3 more evidence sources

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Claim 13: “Revenue: $22.19 billion versus $22.27 billion estimated”

CORROBORATED

Three independent sources confirm the revenue was $22.19 billion versus an estimate of $22.27 billion.

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+ 3 more evidence sources

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Claim 14: “Tan didn't raise the company's forecast for AI semiconductor sales in 2026.”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

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Claim 15: “CEO Hock Tan didn't raise the company's full-year target of $100 billion in artificial intelligence chip sales.”

CORROBORATED

Multiple sources confirm CEO Hock Tan kept the full-year AI semiconductor guidance unchanged at 'in excess of $100 billion'.

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wikipedia NEUTRAL — Broadcom Inc. is an American multinational designer, developer, manufacturer, and global supplier of a wide range of semiconductor and infrastructure software products. Broadcom's product offerings se…
https://en.wikipedia.org/wiki/Broadcom

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wikipedia NEUTRAL — Tan Hock Eng (Chinese: 陳福陽; pinyin: Chén Fúyáng; Pe̍h-ōe-jī: Tân Hok-iâng; born 1951 or 1952) is a Malaysian-born Chinese-American business executive. He is the CEO of Broadcom Inc. He was the third-h…
https://en.wikipedia.org/wiki/Hock_Tan

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wikipedia NEUTRAL — Meta Platforms, Inc. (doing business as Meta) is an American multinational technology company headquartered in Menlo Park, California. Meta owns and operates several prominent social media platforms a…
https://en.wikipedia.org/wiki/Meta_Platforms

+ 3 more evidence sources

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Claim 16: “The stock has multiplied almost ninefold since the end of 2022”

INSUFFICIENT EVIDENCE

No evidence was found in the provided search results regarding the stock's growth since the end of 2022.

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Claim 17: “Net income increased to $9.31 billion, or $1.91 per share, up 88% from $4.97 billion, or $1.03 per share in the same quarter a year earlier.”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

schedule

Claim 18: “Tan also said that the company would offer "chips only," instead of the complete integrated AI systems Broadcom had previously said it would be providing”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

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Claim 19: “but fell short of the $7.32 billion in sales expected by analysts polled by StreetAccount.”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

schedule

Claim 20: “Broadcom reported $15.1 billion in revenue from semiconductor solutions”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

schedule

Claim 21: “In December, Tan said that Anthropic had placed an order for $10 billion in AI chips.”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

info

Claim 22: “Broadcom shares are up close to 40% this year as of Wednesday's close”

SINGLE SOURCE

The provided evidence discusses stock drops and 52-week highs, but does not provide the specific year-to-date percentage gain as of Wednesday's close.

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web search NEUTRAL — Broadcom shares rose nearly 3% to close near a 52-week high, with volume running well above average, as investors positioned ahead of its highly anticipated ...
https://www.perplexity.ai/finance/AVGO

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web search NEUTRAL — Jun 4, 2026 ... Shares of Broadcom fell 15% in premarket trading, on track to wipe out about $300 billion in market cap. If this holds into the Thursday close, ...
https://finance.yahoo.com/markets/stocks/article/broadcom-co…

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web search NEUTRAL — Jun 4, 2026 ... Broadcom (AVGO) shares are down approximately 15% on June 4, 2026, after closing at $479.23 on June 3, with shares trading as low as $405.51 ...
https://tickeron.com/blogs/why-is-broadcom-avgo-stock-down-1…

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Claim 23: “Broadcom reported $7.18 billion in infrastructure software revenue, which was up 9% on an annual basis”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

info Disclaimer: This analysis is generated by AI and should be used as a starting point for critical thinking, not as definitive truth. Claims are verified against publicly available sources. Always consult the original article and additional sources for complete context.