Broadcom Stock Falls 5% as Disappointing Q4 Revenue Guidance Overshadows Record Q3 Beat

Broadcom shares dropped roughly 5% after the company reported fiscal third-quarter results that beat Wall Street estimates on both revenue and earnings, but issued fourth-quarter revenue guidance that fell short of analyst expectations. The chipmaker's Q3 revenue came in ahead of the consensus estimate of approximately $29.47 billion, with non-GAAP earnings per share also topping forecasts, yet investors focused squarely on the softer-than-expected outlook for the current quarter.

Artificial intelligence semiconductor revenue was the standout in the quarter, tripling year over year to approximately $16 billion, in line with CEO Hock Tan's prior guidance of more than 200 percent growth. Broadcom also raised its fiscal 2026 AI semiconductor revenue forecast to $56 billion and logged record quarterly AI bookings of $30 billion. Still, it reiterated its fiscal 2027 AI revenue target of more than $100 billion rather than raising it, a figure many investors had already priced in at a higher level.

The selloff reflected the tension between strong reported numbers and elevated market expectations. Analysts at BofA, Citi, and JPMorgan urged investors to view the dip as a buying opportunity, pointing to AI revenue on track to grow roughly 180 percent in fiscal 2026 and nearly 100 percent in fiscal 2027, with the broader AI infrastructure buildout still in early stages.