**Broadcom Reports Robust Q2 Growth Amid Declining Gross Margins**
Broadcom (AVGO) announced a strong performance in Q2 of fiscal 2026, with semiconductor revenues soaring 79% year-over-year to a record $15 billion, making up 68% of total revenues. However, gross margin declined to 77.1%, a decrease of 230 basis points from the previous year, primarily due to a shift in the revenue mix as the semiconductor business grew faster than infrastructure software.
Looking ahead, Broadcom projects Q3 revenues to reach approximately $29.4 billion, an 84% increase year-over-year, with semiconductor revenues expected to jump to $20.5 billion. The company anticipates gross margins will further decline to around 74% as semiconductor sales continue to dominate. AI semiconductor revenues alone are expected to rise to approximately $16 billion in Q3, reflecting an impressive 124% year-over-year growth.
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