Broadcom Down 11.9% on OpenAI Compute Fears as Funds Shuffle Stakes
Broadcom shares have fallen about 11.9% since Oct. 31, pressured by OpenAI’s planned $1.4 trillion compute spend and weak investor sentiment toward AI commitments. Meanwhile, AssetMark trimmed its Broadcom position by 5.7% in Q3 to 1.61 million shares and Ameritas increased holdings 56.7% to 26,969 shares.
1. Broadcom Share Performance
Broadcom shares slid from $368.92 on October 31 to $325.17 by February 16, a decline of roughly 11.9%, trailing larger drops at Microsoft (−22.4%) and Oracle (−38.9%) over the same period.
2. Impact of OpenAI’s Compute Commitments
OpenAI’s announced $1.4 trillion multiyear compute pledge has sparked market doubts over the sustainability of AI infrastructure demand, prompting investors to trim exposure to Broadcom’s data-center semiconductor business.
3. Institutional Stake Changes
In the most recent quarter, AssetMark cut its Broadcom stake by 5.7% to 1,606,611 shares, while Ameritas Advisory Services boosted its holdings by 56.7% to 26,969 shares, reflecting diverging fund-manager views on Broadcom’s near-term outlook.