Broadcom Forecast Miss Spurs 20% Drop, Trades at Cheaper P/E
AVGO•Broadcom shares plunged 20% after its latest guidance fell short, leaving the stock down 14% year-to-date and sparking a broader AI selloff. The $2 trillion company, with over $90 billion in annual revenue, now trades at a lower forward P/E than Marvell while maintaining the highest analyst buy ratio.
1. Forecast Miss Triggers 20% Selloff
Broadcom issued tepid revenue projections that fell short of market estimates, prompting a 20% share price decline since last Wednesday and dragging its 2026 performance down to a 14% year-to-date loss.
2. Broadcom Versus Marvell Scale Comparison
As a diversified AI infrastructure leader, Broadcom holds a market valuation above $2 trillion and generates over $90 billion in annual revenue, while Marvell’s $230 billion valuation and $6 billion revenue reflect its narrower focus on data-center networking and connectivity.
3. Valuation and Analyst Sentiment
Following the selloff, Broadcom now trades at a lower forward price-to-earnings multiple than Marvell and maintains the highest proportion of buy ratings among analysts, underscoring sustained institutional confidence despite recent weakness.
