Broadcom’s AI chip sales forecast missed expectations, triggering the third-largest megacap wipeout in recent history.
Broadcom (AVGO) shares fell nearly 15% after its AI outlook disappointed investors, erasing $320 billion in market value. The decline ranks among the largest single-stock wipeouts for megacap companies since 2019, trailing only Nvidia (NVDA) and Microsoft (MSFT).
The company beat quarterly earnings estimates but failed to meet elevated expectations for AI chip sales. The drop highlights the high stakes in the AI trade, where even strong growth may not satisfy investor demands.
Historically, Broadcom’s post-drop performance has been resilient. The stock recovered within a month in nearly 80% of past 6%+ declines since 2009, and within three months in nearly 90% of cases.