NEW YORK, July 17, 2026, 13:18 (EDT)
- At 1:03 p.m. EDT, Broadcom shares were at $376.38, showing a 0.5% increase.
- Standard Chartered LON:STAN reports that VMware Cloud Foundation powers 70% of its infrastructure.
- Software reported a segment margin of 78.7% in the second quarter, while semiconductors posted a margin of 61.8%.
Broadcom stock recovered from earlier sharp losses during Friday afternoon trading in the U.S. At 1:03 p.m. EDT, shares were up 0.5% at $376.38, after having dropped 4.4% to $358.05 earlier in the session.
The rebound occurred even as chip stocks stayed weighed down on Wall Street. It also came after the announcement on Thursday of a private-cloud partnership with Standard Chartered. No contract value or anticipated revenue was disclosed by the companies.
Broadcom’s revenue composition is shifting toward lower-margin semiconductor goods. The company forecasts fiscal third-quarter AI semiconductor sales of $16 billion, representing approximately 54% of its projected $29.4 billion in total revenue.
AI chips accounted for 49% of second-quarter sales, according to calculations. Broadcom noted its semiconductor products have lower gross margins compared with software. The bank offers a specific VMware usage metric.
Standard Chartered reported that 70% of its infrastructure is now operating on the architecture, spanning the bank’s activities in 54 global markets. The companies stated that deploying infrastructure has decreased from weeks to a single day.
Broadcom’s most recent quarter highlights the profit disparity between its two divisions.
| Fiscal second quarter 2026 | Revenue | Revenue share | Year-on-year change | Segment operating income | Calculated segment margin* |
|---|---|---|---|---|---|
| Semiconductor solutions | $15.009 billion | 68% | +79% | $9.281 billion | 61.8% |
| Infrastructure software | $7.178 billion | 32% | +9% | $5.647 billion | 78.7% |
Calculated margin is defined as segment operating income divided by segment revenue. This figure does not include $4.14 billion in unallocated expenses.
Software accounted for 32% of revenue and contributed 38% of segment operating income. Segment margin stood at 78.7% prior to deducting unallocated corporate costs. By comparison, the semiconductor margin was 61.8%, lower by nearly 17 percentage points.
The gap makes the bank contract more valuable for profit mix than immediate sales. Most of the deployment has finished, and no revenue timeline was disclosed.
John Sharratt, head of technology infrastructure at the bank, pointed to “a fully virtualized software-defined infrastructure across our global operations.” He stated that this approach enhances responsiveness, resilience and compliance with regulations. Broadcom Inc.
Peer trading showed volatility in early afternoon action. Nvidia NASDAQ:NVDA slipped 0.8%, and Advanced Micro Devices NASDAQ:AMD hovered near unchanged. Marvell Technology NASDAQ:MRVL rose 2.3% in the same delayed market update.
The PHLX semiconductor index fell 1% as of 12:07 p.m., remaining over 20% under its record close reached in late June. XFUNDs trader Louis Kondratev described the decline as “a healthy pullback.” Reuters
Broadcom posted results that shed light on recent heavy stock fluctuations. AI chip revenue surged 143% to $10.8 billion, while infrastructure software increased 9% to $7.18 billion. Overall revenue rose 48% to $22.19 billion.
Broadcom projected third-quarter revenue at approximately $29.4 billion, according to company guidance. Management also expects a 67% non-GAAP operating margin.
Risks persist. The financial details of the deal have not been disclosed, and 70% of the bank’s presence is already established. A further sector downturn could counterbalance the benefits provided by the software division.
Related articles: NASDAQ:AVGO
