Is Broadcom The Next Major Semiconductor To Top?
Why excellent AI growth is no longer translating into upside for Broadcom’s stock
Things Look So Good, Though
The last several weeks are not indicative of a long-term trend, at least by definition. But it doesn’t mean it can’t be the start of something. That something looks to be the cooling of sentiment among tech stocks, particularly related to AI. For example, Nvidia NVDA 0.00%↑ has come off highs and has struggled to bounce (looking corrective on the chart), while others like CoreWeave CRWV 0.00%↑ and Sandisk SNDK 0.00%↑ continue to drop to new lows.
Add Broadcom AVGO 0.00%↑ now to the group after what should be, by all counts, a very solid quarter and outlook. Yet the stock dropped precipitously in the wake of the report and hasn’t found a bottom yet.
The question everyone is asking is, what gives?
To be sure we’re not crazy, let’s look at the numbers to make sure they’re as good as we think they are.