Broadcom’s stock recorded its most substantial three-day plunge since 2020, continuing a significant downward trend. This decline occurred amid a broader tech slide.
The market reaction follows the company’s announcement of record-breaking Q4 and fiscal year 2025 financial results on December 11th. Broadcom reported 28% year-over-year quarterly revenue growth. The firm also implemented a 10% dividend increase.
Analysts offered a contrasting perspective to the market sell-off. Bank of America reiterated Broadcom as a top pick and raised its price target. The firm cited strong future earnings potential.
Negative market sentiment appears fueled by two primary concerns. Investors worry about the lower margins associated with the booming AI-chip business compared to other products. Broader fears regarding an AI bubble also contribute to the sell-off.