Broadcom's AI Semiconductor Revenue Surpasses Software Segment
Broadcom (NASDAQ:AVGO) reported triple-digit growth in its AI semiconductor segment during Q2 FY2026, with revenue rising 143% year-over-year to account for nearly half of the company’s total sales. This shift is impacting gross margins as high-margin software revenue grew only modestly at 9%. Despite a recent sector-wide sell-off affecting chip stocks and AI-related investments, Broadcom remains profitable with $10.3 billion in quarterly free cash flow.
Tickers: $AVGO
Topics: AI investor sentiment margins revenue growth semiconductors