Broadcom shares drop 11% despite strong earnings report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 17 Dec 25
Source: Benzinga
Broadcom Inc's shares fell by 3.00% today, hitting a 20-day low, as the Nasdaq-100 declined by 0.27% and the S&P 500 dropped by 0.08%.
The stock's decline follows a strong earnings report where Broadcom reported a 28% revenue growth to $18.02 billion, surpassing analyst estimates. However, shares plummeted 11% due to negative investor sentiment towards AI infrastructure-related companies, despite the company expecting AI chip sales to double this quarter to $8.2 billion.
This significant drop reflects broader market concerns regarding the profitability of tech investments, particularly in light of warnings about declining margins on future AI system sales. Investors are increasingly cautious, shifting focus from tech stocks to value sectors.
Analyst Views on AVGO
Wall Street analysts forecast AVGO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AVGO is 462.58 USD with a low forecast of 390.00 USD and a high forecast of 525.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
28 Analyst Rating
27 Buy
1 Hold
0 Sell
Strong Buy
Current: 320.050
Low
390.00
Averages
462.58
High
525.00
Current: 320.050
Low
390.00
Averages
462.58
High
525.00
About AVGO
Broadcom Inc. is a global technology firm that designs, develops, and supplies a range of semiconductors, enterprise software and security solutions. The Company operates through two segments: semiconductor solutions and infrastructure software. Its semiconductor solutions segment includes all of its product lines and intellectual property (IP) licensing. It provides a variety of radio frequency semiconductor devices, wireless connectivity solutions, custom touch controllers, and inductive charging solutions for mobile applications. Its infrastructure software segment includes its private and hybrid cloud, application development and delivery, software-defined edge, application networking and security, mainframe, distributed and cybersecurity solutions, and its FC SAN business. It provides a portfolio of software solutions that enable customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
