Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTProsper Junior Bakiny, The Motley FoolTue, June 23, 2026 at 2:42 PM GMT+2 4 min readOn June 3, Broadcom (NASDAQ: AVGO) announced its second-quarter fiscal year 2026 results for the period ending May 3. The company's shares fell off a cliff post-earnings, despite solid revenue and earnings growth, as well as guidance that looked impressive, especially for the company's artificial intelligence (AI) chip business. Broadcom expects semiconductor revenue from AI to grow by over 200% year over year in its Q3, accelerating significantly from the 143% sales growth it posted during Broadcom's second quarter.Evidently, that wasn't enough to impress the market. But there remain excellent reasons to be bullish on Broadcom, including recent news from Amazon (NASDAQ: AMZN). Here's what investors should know.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »Image source: The Motley Fool.Amazon could soon be selling its AI chipsAccording to reports, Amazon is in early talks to sell its Trainium AI chips to other companies. So far, the cloud computing leader has mostly used them in-house, within its own data centers. But the fact that it is actively exploring selling them to outside customers strongly suggests that the demand is there. And there is plenty more evidence for that claim. Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has already said it was planning to start selling its TPUs (Tensor Processing Units) to select outside customers.One important takeaway here is that tech companies and other entities that need to train and deploy AI models increasingly see Application-Specific Integrated Circuits (ASICs) -- or specialized chips customized to perform specific tasks -- as legit alternatives to general-purpose GPUs (Graphics Processing Units), and that won't change anytime soon, especially as corporations seek to decrease their reliance on the GPU market leader, Nvidia (NASDAQ: NVDA).Why Broadcom investors should celebrateAmazon deciding to sell its AI chips is another bullish signal for the entire ASIC market, where Broadcom is a leader. The company's work in this field is powering strong financial results. In the second quarter of its fiscal year 2026, the company's net revenue increased 48% year over year to $22.2 billion, while its adjusted earnings per share rose 54% to $2.44. Broadcom also posted free cash flow of $10.3 billion, up 60% compared to the prior-year quarter.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info