On September 3, Broadcom fell 3.12% in pre-market trading, trading at approximately $355.74/share, after reporting fiscal Q3 results post-close the prior session.

Broadcom posted Q3 revenue of $29.59 billion, up 86% year-over-year and above the consensus estimate of $29.24 billion. Adjusted EPS came in at $3.32, a 96% increase that topped the $3.22 estimate. AI semiconductor revenue surged 221% to $16.7 billion. However, the company guided Q4 revenue to approximately $34.8 billion, falling short of some analyst expectations ranging from $35.05 billion to $36.0 billion. Q4 gross margin guidance of roughly 73%, down from 78% a year earlier, further weighed on sentiment, triggering an initial after-hours drop exceeding 5%.

Shares partially recovered during the earnings call as CEO Hock Tan raised FY2026 AI revenue guidance from $56 billion to $58 billion and outlined a path to $230 billion in AI semiconductor revenue by FY2028. He noted Anthropic is expected to become the largest XPU customer by FY2027, with OpenAI collaboration on third-generation XPU also underway.

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