Broadcom sheds more than $300 billion in market value after declining to raise long-term AI revenue target and providing third-quarter AI chip outlook below Wall Street expectations

Broadcom reported second-quarter revenue of $22.2 billion, up 48% year-on-year, with AI chip sales more than doubling and adjusted earnings per share rising 54% to $2.44. The stock dropped more than 12% in after-hours trading, wiping out more than $300 billion in market value.

CEO Hock Tan guided third-quarter consolidated revenue to $29.4 billion, representing 84% year-on-year growth, and raised the full-year AI semiconductor revenue forecast to $56 billion, up roughly 180% from the last fiscal year. Broadcom supplies custom AI accelerators and high-speed networking chips to hyperscalers including Google, Meta and OpenAI.

Asian markets opened sharply lower on Thursday, with the MSCI index for Asian shares falling 1.6%, Nasdaq 100 futures retreating 0.5%, and South Korea's KOSPI falling 1.8%. Samsung Electronics and SK Hynix declined between 2% and 4%, while AI server assemblers Hon Hai Precision and Wistron fell close to 4% and 8%, respectively.