Broadcom (AVGO) is not just having a bad post-earnings pullback.
The stock is down nearly 15%, erasing roughly $320 billion in market value and putting it among the biggest single-stock wipeouts of the megacap era
The trigger was Broadcom’s AI outlook. The company beat quarterly earnings expectations, but its AI chip sales forecast disappointed investors after a huge run in the stock, pressuring the broader chip trade. That’s the hard part about the AI trade right now.
The business can still be growing fast, and the stock can still get hit if expectations are even faster. Broadcom’s drop ranks near the top in recent megacap history. In a Yahoo Finance analysis of the current top megacap stocks going back to 2019, a $320 billion market-cap loss would trail only Nvidia (NVDA) and Microsoft (MSFT) among the largest one-day single-stock wipeouts in the group.