Broadcom Stock Is Down More Than 22% From Its Peak and Worth a Closer Look

Yahoo Finance · 2026-06-26

The tech sector has been under some pressure recently, and one stock that has been hit hard is Broadcom ( AVGO 1.02% ) . After hitting a record high of $495 in early June, the stock has now lost more than 22% of its value. The stock took an initial hit following its fiscal Q2 earnings results, as it failed to lift its fiscal 2027 guidance for AI chip revenue. This seemed to be a clear overreaction, as there was no real reason for Broadcom management to raise a forecast more than a year away. The company is still projecting that its AI chip revenue will grow to well over $100 billion in fiscal 2027, a huge number given that it produced under $64 billion in fiscal 2025 revenue. The sell-off in Broadcom stock has brought its valuation down to a forward price-to-earnings (P/E) ratio of around 19.5 times fiscal 2027 analyst estimates. That's cheap for a stock that is riding two powerful market trends set to see explosive growth in the coming years. The first trend Broadcom is riding is hyperscalers (owners of large data centers) looking to replace Nvidia's graphics processing units (GPUs) with cheaper alternatives for their AI workloads, especially for inference , which is an ongoing cost. The company is a leader in ASIC (application-specific integrated circuit) technology and helped Alphabet develop its highly successful Tensor Processing Units (TPUs). Alphabet plans to spend up to $190 billion in capital expenditures (capex) this year, with further increases next year, and much of that spending will go toward TPUs.

AI 시장 분석

Broadcom(AVGO) has fallen more than 22% since the early-June high of $495, a reaction to not raising fiscal 2027 AI-chip revenue guidance after its fiscal Q2 results. The company still expects AI-chip revenue to grow to more than $100 billion in fiscal 2027, and the forward P/E is about 19.5x. In particular, hyperscalers shifting inference workloads from NVDA GPUs to more cost-efficient ASICs/TPUs and Alphabet's up-to-$190 billion capex plan provide growth momentum for ASIC/AI-chip suppliers like Broadcom. In the short term, the absence of explicit guidance triggered an overreaction and valuation reset, but the long-term demand-structure change remains intact.

상승 영향

Semiconductors (ASIC/AI chips) — If hyperscalers shift inference workloads from NVDA GPUs to ASICs/TPUs to reduce costs, orders and margins for ASIC designers and manufacturers such as Broadcom are likely to increase significantly.
AI — Rising AI infrastructure demand will drive long-term revenue growth and increased investment for AI chips, inference-optimization solutions, and related software and services providers.
Data Centers/Cloud Infrastructure — Large-scale capex by hyperscalers like Alphabet will boost demand for data center networking, storage, power, and cooling equipment, improving suppliers' performance.
Servers/Capital Goods — Chip replacement and expansion needs from cloud operators are likely to drive sales and capital expenditure growth for server, switch, and power-supply manufacturers.

하락 영향

GPU (Graphics Chips) — including NVDA — If some inference workloads move to ASICs/TPUs, a portion of demand for NVDA-centric GPUs could decline, posing a risk of slower GPU revenue growth.
Large Technology/Growth Stock Valuations — Broadcom's sharp drop highlights sensitivity to AI/semiconductor expectations and could prompt a re-evaluation of valuations and short-term doubts about fundamentals across tech stocks.
Market Sentiment/Short-term Investors — An overreactive sell-off following the absence of forward guidance can increase volatility and short-term selling pressure, exacerbating price instability for related names.

AI가 생성한 분석으로 투자 자문이 아닙니다.

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