Broadcom posted record Q2 revenue but stock fell as investors worry about AI chip demand slowdown and margin pressures, leaving the stock down 10% in a month despite year-to-date gains.

What happened

Broadcom reported record Q2 revenue of US$22,187 million（約3.5兆円） and net income of US$9,310 million（約1.5兆円）, yet the share price declined as investors reacted to next quarter's guidance and shifting sentiment around AI chips. The stock is down 10.14% over the past 30 days, though it remains up 9.91% year to date.

What to watch

Broadcom trades at $382.07, well below the $651.05 fair value implied by analyst models, creating a sizeable valuation gap. The setup can crack if hyperscaler AI spending cools faster than expected, or if custom silicon and software fail to gain traction—both material risks to monitor alongside capital rotation into competing opportunities like the SpaceX IPO.