---
title: "Broadcom's 'Good' Wasn't Good Enough—Now the Setup Gets Interesting"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/288895240.md"
description: "Broadcom shares dropped 12.6% after reporting solid but unexceptional Q2 earnings, barely beating revenue estimates and failing to raise its full-year AI chip sales target. Despite the selloff, the stock remains up significantly year-to-date. The decline reflects high investor expectations for AI infrastructure stocks, with analysts suggesting the overreaction may present a buying opportunity."
datetime: "2026-06-05T18:17:57.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/288895240.md)
  - [en](https://longbridge.com/en/news/288895240.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/288895240.md)
---

# Broadcom's 'Good' Wasn't Good Enough—Now the Setup Gets Interesting

Broadcom (AVGO) shares dropped by 12.6% on Thursday after the AI chipmaker reported solid but unexceptional earnings. The AI infrastructure company beat fiscal second-quarter earnings estimates by about 2%, but barely scraped past revenue estimates.

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Stocks like Broadcom and competitors Nvidia (NVDA) and Advanced Micro Devices (AMD) have had incredible runs, and now are priced for perfection. Anything less than a stellar earnings report is going to land AI infrastructure high-flyers in the doghouse.

## **Asking Too Much?**

To understand how demanding investors have become of these names, the selloff was blamed on Broadcom CEO Hock Tan's failure to raise the company's full-year target for AI chip sales.

It was only three months ago, on March 4, that Tan first said Broadcom's AI chip revenues could exceed $100 billion for the year.

Back then, this news was treated as a revelation, and Broadcom shares vaulted higher by 23%. Now, it's a disappointment.

## **Charting Broadcom**

Even after Thursday's decline, Broadcom shares have gained over 20% so far this year, and have soared over 60% over the past 12 months. Thursday's move seems like an overreaction and may present a buying opportunity for Broadcom.

Broadcom closed on Thursday at $418. This means the post-earnings selloff merely erased about a week's worth of gains. Prior to Thursday, the last time Broadcom traded at $418 was on May 28.

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- [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md)
- [AMD.US](https://longbridge.com/en/quote/AMD.US.md)
- [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md)

## Related News & Research

- [Broadcom (NASDAQ:AVGO) Given New $530.00 Price Target at Bank of America](https://longbridge.com/en/news/288758880.md)
- [Broadcom (AVGO) Stock Is Soaring Today Ahead of June 3 Earnings. Here's Why](https://longbridge.com/en/news/288404355.md)
- [Broadcom Inc. $AVGO Stake Cut by Yukon Wealth Management Inc.](https://longbridge.com/en/news/288561455.md)
- [Broadcom (NASDAQ:AVGO) Releases Earnings Results](https://longbridge.com/en/news/288643037.md)
- ['Step on the Gas,' Says Top Investor About Broadcom Stock](https://longbridge.com/en/news/288285573.md)