Broadcom reported $30 billion in AI bookings against $10.8 billion in shipped revenue, reflecting a massive order backlog in custom networking silicon.
Broadcom stock traded at $393.02, down 3.40%, holding a session range of $386.74 to $399.00 on 16.32 million shares against average daily volume of 23.12 million. Market capitalization sits at $1.88 trillion. The 52-week high printed $495.00 on June 3, 2026; the 52-week low was $273.00 on July 23, 2025. At $393.02, AVGO sits 20.6% below the high it set six weeks ago and 43.9% above the low it set twelve months ago.
The stock carries a 24.37x forward multiple against 64.78x trailing on $6.00 of TTM earnings. Trailing twelve-month revenue runs $75.465 billion at a 68.35% gross margin and a 38.85% net margin. EBITDA sits at $42.063 billion. Return on equity is 37.28%. Beta reads 1.47 across 4.76 billion shares outstanding.
The decline is largely a broader cooling in the semiconductor industry as market participants reassess the sustainability of high-valuation growth trajectories against renewed rate concerns. The 10-year Treasury yield reached 4.60% today, approaching its 4.62% two-month high. As a bellwether for the AI infrastructure trade, Broadcom carries heightened sensitivity to shifts in institutional risk appetite when macro indicators point to a prolonged period of elevated borrowing costs. The Technology Equipment complex fell 2.33%; Broadcom underperformed. Micron dropped 4.60%. SanDisk fell 7.81%. Nvidia lost 2.30%. A gauge of semiconductor firms shed 3% while the Nasdaq Composite fell 0.82% to 26,054.38.
The central disconnect is stark. Broadcom stock has risen only 13% year to date, underperforming several chip stocks amid concerns about rising competition from Taiwan-based MediaTek. On a company whose AI semiconductor revenue grew 143% year-over-year, this represents a significant valuation gap. Compare the field: TSMC is up almost 40% year to date at 411.20 after posting record Q2 revenue of $40.2 billion and raising 2026 capex to $60-64 billion. Apple hit an all-time high of 327.50 on Wednesday. Amazon at $256.87 has gained 14.22% over twelve months on a cloud business growing 28%.
The specific trigger was CEO Hock Tan's decision not to raise the company's full-year target of $100 billion in AI chip sales, despite a record quarter. The stock fell about 15% on the Thursday after Q2 earnings. AVGO at $495.00 on June 3—the day it reported—against $393.02 today is a $101.98 decline, or 20.6%. At 4.76 billion shares, that is $485 billion of market capitalization removed from a company that simultaneously reported record revenue, record operating profit, record free cash flow, and $30 billion of AI bookings. Half a trillion dollars was erased for declining to raise guidance.
During the second quarter, bookings for AI semiconductors exceeded $30 billion against the $10.8 billion Broadcom shipped. Bookings now exceed three times quarterly shipments, reflecting structural demand acceleration and a growing backlog. That ratio is the single most bullish operating metric in the semiconductor complex. Management highlighted unprecedented order visibility extending into 2028 from hyperscaler and large language model customers, with multi-year agreements underpinning long-term expectations of $100 billion-plus in annual AI semiconductor revenue starting in fiscal 2027. On supply, Tan stated the company is comfortable for 2026 and 2027 and is working on securing supply for 2028 and 2029, having met incremental customer demand and expecting to continue.
The central thesis is uncomfortable and specific: Broadcom is the only AI infrastructure name whose bookings run three times its shipments, whose stock is up 13% year to date, and whose CEO refused to raise a $100 billion target and got punished 15% for it. At 24.37x forward earnings against a $30 billion booking quarter, this is where the AI trade is priced for failure. The duration problem is acute. A $30 billion order book with delivery in 2027 and 2028 is worth less to a market discounting at 4.60% than $10.8 billion of revenue booked today—precisely the duration repricing that has hit every AI infrastructure name this quarter.
In December, Broadcom disclosed an AI backlog over the next 18 months of $73 billion. The market spread that linearly over six quarters, but backlogs are front-loaded—roughly 80% or more of that $73 billion gets delivered in the first four quarters. Analysts asked directly whether the 18-month backlog covering the second half of fiscal 2026 through all of fiscal 2027 now sits at $200 billion or better, citing the strength of all programs, the broadening customer base, accelerating year-over-year AI shipments, and the multi-gigawatt partnerships set to start firing next year. Tan called it a very complicated set of number questions and did not answer.
Q2 semiconductor revenue from AI hit a record $10.8 billion, up 143% year-over-year and above forecast, driven by increasing demand for custom AI accelerators and AI networking. That figure represented roughly 49% of total revenue—almost half of every dollar Broadcom earned came from AI chips. Total revenue reached a record $22.2 billion, up 48% year-over-year. Semiconductor revenue hit a record $15 billion, up 79%. Operating margin printed a record 67% and adjusted EBITDA a record 69% of revenue—both above guidance. Non-GAAP EPS landed at $2.44 against roughly $2.32 expected.
The acceleration across four quarters is notable. Q1 fiscal 2026 AI revenue ran $8.4 billion, up 106% year-over-year, on consolidated revenue of $19.3 billion that grew 29%. Adjusted EBITDA hit a record $13.1 billion at 68% of revenue. From $8.4 billion to $10.8 billion in one quarter, guidance was beaten and growth accelerated from 106% to 143%.
Networking represented almost 40% of Q2 AI revenue—the piece few models. Broadcom does not merely sell the accelerator; it sells the entire infrastructure backbone connecting them.