Broadcom clears fresh AI revenue milestones, shares trade lower after recent rally

By Anna Wagner, Analysts & Consensus desk. Reviewed prior to publication on 2026-06-23, 09:25.

Broadcom Inc. (US11135F1012) is doubling down on artificial intelligence demand, with the NASDAQ-listed chip group outlining sharply higher AI semiconductor revenue targets in recent commentary. The updated figures frame a stock that has rallied year to date but now trades below early-June highs, according to recent analyst coverage and price data.

AI revenues accelerate sharply

Broadcom’s latest AI-focused update points to a marked acceleration in semiconductor sales tied to artificial intelligence workloads. According to a Zacks analysis, AI semiconductor revenues in the second quarter of fiscal 2026 jumped 143 percent year over year to about 10.8 billion dollars, meaningfully above earlier internal expectations.Zacks-based report on Broadcom's AI revenues

The same analysis reports that Broadcom now anticipates AI semiconductor revenues of roughly 16 billion dollars in the third quarter of fiscal 2026, implying more than 200 percent growth versus the prior-year period. Management commentary further sketches a full-year AI revenue ambition of around 56 billion dollars, which would represent an approximate 180 percent increase compared with the preceding fiscal year.

Consensus and valuation picture on AVGO

On the equity side, Broadcom shares trade on NASDAQ under the ticker AVGO and have delivered a robust performance so far in 2026. Zacks calculates a year-to-date gain of about 18.9 percent for the stock, slightly below the roughly 20 percent advance of its broader Computer and Technology sector peer group. This places Broadcom among the stronger large-cap semiconductor names, alongside peers such as Texas Instruments and Analog Devices, which also benefit from structural demand trends in chips.

Valuation has moved up with the share price. The Zacks piece cites a forward 12-month price-to-sales ratio of around 13.6 times for Broadcom, versus roughly 6.8 times for the sector benchmark. At the same time, the consensus earnings estimate for the third quarter of fiscal 2026 has edged higher to about 3.22 dollars per share, up 2.9 percent over the past month and implying close to 90 percent growth from the same quarter a year ago. Broadcom currently carries a Zacks Rank of 3, corresponding to a Hold recommendation in that framework.

The product behind Broadcom’s AI push

Broadcom generates the bulk of its semiconductor revenue from custom chips and networking solutions used in large-scale data centers. A core focus is high-speed application-specific integrated circuits and optical networking components tailored for hyperscale cloud operators, where AI training and inference workloads require massive bandwidth and low-latency interconnects.

Where the Broadcom shares trade today

The Broadcom shares (US11135F1012) most recently traded on NASDAQ at about 392.32 dollars per share as of 2026-06-23, 06:05, according to price data compiled by MEXC.

This article is for informational purposes only and does not constitute investment advice, a recommendation to buy or sell securities, or a solicitation of any transaction. Figures and dates are based on sources cited and may change; investors should consult original filings and professional advisers before making decisions.