Immediately after the semiconductor and infrastructure company published its second-quarter (Q2) earnings following the June 3 closing bell, Broadcom (NASDAQ: AVGO) stock plunged and is, at press time on Thursday, 12.99% below its latest close at $417.
The steep drop came despite the overall respectable results due to a list of factors, of which perhaps the strangest was a blunder at the very beginning of the earnings call. Specifically, CEO Hock Tan mistakenly started reading the figures for Q2, 2025 before swiftly correcting himself.
Unfortunately, the correction brought only partially positive news as Broadcom beat the earnings per share (EPS) forecasts, revealing $2.44 – higher than the estimated $2.40 – but underperformed in terms of revenue.
Indeed, Wall Street was anticipating the company would reach $22.27 billion while it, in fact, achieved $22.19 billion in sales during Q2, 2026.
Guidance added to the bearish sentiment as Broadcom affirmed its previous estimate that semiconductor revenue would amount to $100 billion, while the market was looking for – as has arguably become customary for big tech amidst the artificial intelligence (AI) boom – a raise.
Why Broadcom stock just crashed 13% in the extended session
AVGO stock’s performance earlier in 2026 does much to explain the strong negative reaction to the generally respectable earnings – for example, revenue rose significantly from the $15 billion in Q2 2025, despite missing the forecasts by $80 million.
Specifically, Broadcom shares are overall up 37.86% in 2026 with their latest closing price of $479.23. The bulk of the rally can be attributed to a two-stage rise starting in late March that accounts for a total upsurge of more than 63%.
The first step in the rise took place between March 30 and April 22 and featured a 44% climb, and the second – adding more than 15% to the rally – started on May 22 and persisted up to the most recent closing bell.
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