Broadcom Stock Drops Despite Earnings Beat
Despite reporting better-than-expected earnings for Q3 fiscal year 2026, Broadcom (NASDAQ: AVGO) stock fell by nearly 6.3% on September 3, 2026. The company reported $3.32 per share in non-GAAP earnings and revenue of $29.6 billion—beating analyst expectations—but investors were disappointed with its Q4 guidance. Broadcom's CEO Hock Tan expressed confidence about continued strong demand for AI accelerators, forecasting a tripling of AI semiconductor revenue to $21.7 billion in the next quarter. However, this fell short of Wall Street’s higher-than-expected projections above $35 billion in total Q4 sales. The stock's decline reflects investor concerns over whether Broadcom can maintain its current growth trajectory and meet rising expectations for future performance.
