In early June, shares of custom chipmaker Broadcom (NASDAQ: AVGO) were near their high of around $500, ahead of the company’s latest earnings report.
But despite posting strong numbers and solid growth, the stock fell sharply afterward and hasn’t recovered since
Is the tech stock a good buy while it’s trading below $400? Why has the market turned bearish on Broadcom? Broadcom has been a top growth stock for years, and in five years, it’s up around 700%.
This year, its gains are around 10%, which appears modest given not only its impressive growth but also its strong potential due to artificial intelligence (AI). In the company’s most recent quarter, which ended May 3, its semiconductor revenue from AI surged 143% to $10.8 billion. And for the current quarter, growth is expected to be even more robust, with CEO Hock Tan expecting the company’s AI-related semiconductor revenue to rise by 200% to $16 billion.