Broadcom stock falls as investors assess fourth-quarter guidance

Broadcom just posted one of the strongest quarters in its history. Revenue surged 86% year-over-year. Earnings crushed estimates. AI chip sales more than tripled. And the stock dropped. The numbers that should have been a victory lap Broadcom reported fiscal Q3 2026 revenue of approximately $29.6 billion, handily topping Wall Street’s consensus estimate of around $29.2 billion. That 86% year-over-year jump is the kind of growth rate most companies would frame and hang above the fireplace. Adjusted earnings per share landed at $3.32, clearing analyst expectations of $3.22 to $3.24. The real star of the show was AI semiconductor revenue, which hit $16.7 billion in the quarter. That figure represents a 221% increase compared to the same period last year and a 54% jump from the prior quarter. The company pointed to surging demand for custom AI accelerators and networking solutions as the primary drivers. These are the chips that power hyperscaler data centers and the high-speed connections that link them together. Where the mood shifted Then came the guidance. Broadcom projected Q4 fiscal 2026 revenue of approximately $34.8 billion, representing roughly 93% growth year-over-year. But a...