European semiconductor stocks fell after Broadcom held its $100 billion AI revenue forecast unchanged, disappointing investors.

Broadcom posted fiscal second-quarter revenue of $22.2 billion and earnings per share of $2.44, with AI semiconductor revenue rising 143% year-over-year to $10.8 billion. The company reiterated its fiscal 2027 target of $100 billion in AI revenues rather than raising it, and guided AI chip revenue for the current quarter at $16 billion, below the street's $17.2 billion forecast.

European semiconductor stocks including Nokia, STMicroelectronics, Infineon, ASML and ASM fell 2–9% following the guidance. Broadcom shares fell more than 13% in premarket trading.

Analyst Stacy Rasgon noted that the decision to reiterate rather than raise the FY27 $100 billion AI guidance caused the stock decline, while analyst Vivek Arya called the decision 'a sign of conservatism given ongoing supply constraints at customers' and noted Broadcom's visibility extends into 2028 across multiple new customers including Anthropic, Meta and OpenAI.