Investors sold off AVGO shares after the chipmaker reiterated its $100 billion AI revenue target without raising expectations.
Broadcom (NASDAQ: AVGO) shares dropped as much as 14% Thursday after its Q2 results, despite revenue rising 48% year over year to $22.2 billion. The decline followed the company’s decision to maintain its full-year AI chip revenue guidance of “in excess of $100 billion,” unchanged from Q1.
Analysts had anticipated a more bullish outlook, and the lack of upward revision disappointed investors. The sell-off extended to other AI-related stocks, reflecting broader concerns about overvaluation in the sector.
The move suggests investors are recalibrating expectations for AI-driven growth, though the industry’s long-term prospects remain intact.