Broadcom Shares Fall 5.6% Even as Revenue Surges 86%
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Broadcom Shares Fall 5.6% Even as Revenue Surges 86% Khac Phu Nguyen Thu, September 3, 2026 at 5:20 PM EDT 1 min read AVGO This article first appeared on GuruFocus . Broadcom ( NASDAQ:AVGO ), the AI-chip and infrastructure-software powerhouse, tumbled 5.64% to $346.54 on Thursdayeven after quarterly revenue rocketed 86%. A separate Reuters report exposed the problem. The quarter was huge. The bar was brutal. The stock paid the price. Warning! GuruFocus has detected 2 Warning Sign with AVGO. Is AVGO fairly valued? Test your thesis with our free DCF calculator. Broadcom's third-quarter release delivered $29.59 billion in revenue, including $16.7 billion from AI semiconductors. Free cash flow surged to $13.67 billionan extraordinary 46% of sales. Management expects fourth-quarter revenue of approximately $34.8 billion, with AI-chip sales jumping to roughly $21.7 billion. Those are blockbuster numbers. Wall Street wanted fireworks on top of fireworks. AI chips could climb from 56.4% of third-quarter revenue to approximately 62.4% next quarter, with the business expanding nearly 30% sequentially. But the valuation picture flashes a warning: Broadcom's $346.537 share price sits just 1.4% below its $351.46 GF Value, leaving almost no cushion for a merely excellent quarter. The AI engine is roaring. The cash machine is humming. Yet when perfection is already priced in, even spectacular growth can land like a disappointment.
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