Broadcom Plunges on Weak Software Sales Despite Unchanged AI Chip Forecast
CNBC·medium signal
Broadcom shares fell after its Q2 fiscal 2026 report showed weak software-segment sales even as the AI chip forecast held steady. The split is a telling signal: hyperscaler AI hardware demand remains strong while Broadcom's enterprise software (largely VMware) shows softness, suggesting legacy infrastructure-software bundles are under pressure even inside AI-darling companies. For builders, it reinforces that 'AI exposure' at the chip layer does not automatically lift the legacy software businesses bolted onto it.