Broadcom stock is trading near $369 ahead of its third-quarter fiscal 2026 earnings report scheduled for September 2 after market close, down roughly 25 percent from its May peak as investors reassess the semiconductor sector and worry about competitive threats to the chipmaker’s custom silicon business.
The decline reflects a pattern of earnings-driven volatility that has plagued the company all year. In June, Broadcom beat analyst estimates on revenue of $22.2 billion, up 48 percent year-over-year, and AI semiconductor revenue surged 143 percent to $10.8 billion. Yet the stock fell roughly 12 to 15 percent after the company reiterated rather than raised its full-year AI revenue target, disappointing investors who expected a more bullish update.
Wall Street is bracing for a similar dynamic ahead of September 2. Analysts expect Broadcom to report third-quarter earnings per share of $3.22 to $3.24, up roughly 90 percent year-over-year, with revenue of $29.24 billion to $29.4 billion, up about 84.5 percent. Management’s own guidance of $29.4 billion in revenue exceeds analyst consensus, suggesting a potential beat. Yet the bar for positive surprise has risen sharply after the June letdown, and any hint that AI growth is moderating could trigger another selloff.
The August decline also reflects competitive pressure from rivals. On August 19, Marvell Technology announced an expanded custom chip deal with Google worth up to $120 billion in potential revenue through fiscal 2033, signaling that the search giant is diversifying its semiconductor supply chain beyond Broadcom. Broadcom stock fell roughly 5 percent on the news, as investors weighed the implications of Google reducing its dependence on any single supplier. Morningstar analyst William Kerwin told Reuters the deal represents “a growing pie at Google for new sources, rather than a competitive displacement of Broadcom,” though the shift underscores hyperscalers’ growing leverage in chip negotiations.
Broader semiconductor weakness has also weighed on the stock. A global tech selloff throughout the summer of 2026 has pressured chip stocks as investors fret over AI financing sustainability, margin compression, and elevated valuations. Despite strong underlying business fundamentals, Broadcom has been caught in the sector-wide downdraft alongside peers.
The August decline has attracted contrarian buyers. On August 27 and 28, Cathie Wood’s ARK Invest purchased approximately $20.5 million of Broadcom shares, adding the stock to its portfolio as it traded roughly 25 percent below its May peak. ARK’s purchase reflects Wood’s consistent strategy of buying during market downturns, betting that short-term sentiment disconnects from long-term value. The firm simultaneously reduced its position in AMD by $18.3 million, signaling a preference for Broadcom at current valuations.
Options markets are pricing in significant post-earnings volatility. Broadcom options signal a potential 7.3 percent move on September 2, according to Investing.com, reflecting the uncertainty around whether the company will again beat expectations while disappointing on forward guidance. For investors, the earnings call will be closely watched for any commentary on the pace of AI adoption, the health of customer backlogs, and the company’s confidence in sustaining the 200 percent year-over-year growth it guided for AI chips in the current quarter.
Sources
- Broadcom Investor Relations — Official announcement of September 2, 2026 earnings date and Q2 2026 results
- Yahoo Finance / CNBC / Reuters — Broadcom Q2 earnings beat, stock decline of 12-15 percent, AI revenue guidance disappointment
- Perplexity AI / MarketBeat / StoneX — Q3 2026 analyst expectations: EPS $3.22-3.24, revenue $29.24-29.4B
- CNBC / Reuters — Marvell-Google warrant deal announcement, $120B revenue potential, Broadcom stock reaction (5% decline)
- ECIKS.org — ARK Invest purchases of $20.5M Broadcom shares on August 27-28, contrarian buying pattern
- Investing.com — Options-implied volatility of 7.3 percent for September 2 earnings move
- Yahoo Finance / Fool.com — Broadcom stock decline from May peak (~25%), broader semiconductor sector weakness in August 2026
