Broadcom [KZw4SRCDfAp]

AVGO posted a genuinely strong quarter. Revenue grew 48% and AI revenue ripped 143%. The stock still lost $350 billion in market cap in a single day. Chief Market Strategist Shay Boloor breaks down why a print this strong sold off 15%, and why he thinks the thesis is fully intact.

The print:

Revenue around $22B, up 48% year over year

AI revenue $11B, up 143% year over year

EBITDA $15B, free cash flow $10B

Q3 AI revenue guided to $16B, over 200% year over year (whisper was closer to $18B)

2027 AI revenue target reaffirmed at over $100B (not raised)

Trading at 32x earnings, PEG under 1 for the next three years

Six core AI customers, including Meta, Google, OpenAI, and Anthropic

Shay's read: the quarter was strong, but AVGO had gone vertical into the print, so the market judged it against the most bullish version of the AI story instead of normal expectations. The guide came in princess cruises under the whisper, the 2027 target was reaffirmed rather than raised, and the CFO flagged margin pressure as custom accelerators scale. None of that breaks the thesis. The debate has simply moved from whether AI demand is real to whether Broadcom can convert that demand flix auger-aliassime into revenue at the right margin while holding share. Shay still calls them the Uncle Sam of AI, taxing every AI workload the hyperscalers run.

About FE Earnings Edge:

FE Earnings Edge is Futurum Equities' rapid-reaction earnings series with Chief Market Strategist Shay Boloor (@StockSavvyShay), breaking down the prints that move the AI, semiconductor, space, energy, security, and robotics names the firm covers.

Disclaimer: diana shnaider This content is for informational and educational purposes only and should not be considered financial advice. Always do your own research.