Following Broadcom’s fiscal 2026 third-quarter earnings announcement, market attention shifted from simply assessing whether results were strong to examining the composition of its fourth-quarter guidance. Based on the verified figures, the outlook for total revenue and the outlook for AI semiconductor revenue moved in different directions relative to market expectations. At the same time, the phrase ‘7 trillion won in foreign selling’ surrounding South Korean semiconductor stocks must also be examined by its actual target and scope.
Key Changes
Broadcom forecast fourth-quarter revenue of $34.8 billion, below the analyst consensus of $35.05 billion. By contrast, it forecast AI semiconductor revenue of $21.7 billion, above the market expectation of $21.33 billion. The key point, therefore, is to read the guidance separately by total revenue and the AI semiconductor segment rather than interpreting it as a single outlook for the entire business.
The total revenue outlook was lower than expected, but the AI semiconductor revenue outlook was higher than expected.
This difference explains why the market reaction to Broadcom’s earnings announcement is difficult to summarize as a one-directional assessment. The outlook for AI semiconductors and the company-wide revenue outlook did not follow the same numerical trend.
Current Status
Broadcom’s management was reported to have said during its briefing that company revenue could grow to $115 billion in fiscal 2027 and $230 billion in fiscal 2028. These are long-term projections presented separately from the short-term fourth-quarter guidance. The comparison between the short-term outlook and market expectations and the long-term growth projection use different time horizons and should not be interpreted on the same basis.
The ‘7 trillion won in foreign selling’ identified in South Korean market flows refers to 7.0596 trillion won in net foreign selling of SK hynix in August 2026. It is not a combined figure for foreign selling of Samsung Electronics and SK hynix. During the same period, foreigners were reported to have net sold Samsung Electronics preferred shares worth 1.4484 trillion won and Samsung Electronics shares worth 819.8 billion won.
By contrast, individual investors were reported to have net bought SK hynix shares worth 2.6418 trillion won and Samsung Electronics shares worth 2.2878 trillion won during the same period. This means that South Korea’s market also needs to be viewed with the contrast between foreign and individual investor flows by stock.
Implications
The most important basis for assessing this issue is not to treat Broadcom’s AI semiconductor outlook and domestic semiconductor-stock flows as having the same cause. Broadcom’s guidance contains a gap between its total revenue outlook and its AI semiconductor outlook, while foreign and individual investor flows in South Korea moved in opposite directions during August. The two developments may be discussed together within the broader interest in the semiconductor industry, but it has not been confirmed that Broadcom’s announcement directly caused the flows in Samsung Electronics or SK hynix.
The U.S. macroeconomic environment should also be considered a separate variable. In the U.S. July 2026 employment report, nonfarm payrolls fell by 23,000, below market expectations, and the result was reported as a factor reducing expectations of a September Federal Reserve rate hike. However, changes in employment indicators and rate expectations likewise cannot be established as having a direct causal relationship with Broadcom’s earnings or domestic semiconductor-stock flows.
Next Checkpoints
The next four items to monitor are:
- How Broadcom’s $34.8 billion fourth-quarter total revenue outlook is treated in subsequent market assessments.
- Whether the $21.7 billion AI semiconductor revenue outlook continues to be cited as a key variable relative to market expectations.
- When reviewing domestic semiconductor flows, keeping SK hynix’s 7.0596 trillion won in net selling separate from the figures for Samsung Electronics and Samsung Electronics preferred shares.
- How follow-up data concerning U.S. employment and Federal Reserve rate expectations changes.
The currently verified materials do not support a definitive investment conclusion or a firm prediction about the price direction of any specific stock. Figures and market flows immediately after an earnings announcement can change quickly. When reviewing Broadcom and South Korean semiconductor stocks, it is therefore necessary to check the announcement timing, the stocks involved, and the period covered together.