Broadcom's revenue forecast disappoints some investors, highlighting AI concerns

BlockBeats News, on March 5th, Broadcom (AVGO.O) issued a second-quarter revenue guidance that disappointed investors, indicating that its progress in artificial intelligence computing is slower than some had previously expected.

The company’s second quarter (ending May 3rd) revenue was approximately $22 billion, compared to the analyst average forecast of $20.5 billion, with some estimates even exceeding $22 billion. Its stock price barely changed during after-hours trading, and the market did not react significantly after the earnings announcement.

As of Wednesday’s close, Broadcom’s stock has fallen 8.3% in 2026. This lukewarm reaction reflects the extremely high thresholds faced by AI companies in 2026. Investors are increasingly worried about a bubble in AI investments, and even NVIDIA’s massive profit report last month triggered a decline in its stock price. (Jin10)