Here's The Real Reason Why Broadcom Stock Tumbled Last Week

Shares of Broadcom (NASDAQ: AVGO) have been soaring this year as the semiconductor company scored major AI chip wins, but investor sentiment shifted hard last week. Broadcom stock dropped by more than 11% on Friday in reaction to the company's report for the fourth quarter of fiscal 2025.Broadcom's results and guidance were stellar. Revenue surged 28% year over year, adjusted EPS increased 37%, and the company forecasted strong sequential growth in the first quarter of fiscal 2026. Revenue and earnings exceeded analysts' expectations, and AI semiconductor revenue increased by 74%. In the first quarter, Broadcom expects AI revenue to more than double.Broadcom recently struck a deal with OpenAI for custom AI chips, and it's a partner to Alphabet for its TPUs as the tech giant pursues a new strategy of selling its AI chips to third-party customers. Broadcom ended the quarter with an AI-related backlog of $73 billion, nearly half of the company's total backlog.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool