Broadcom Shares Fall Over 1.5% on Bank Downgrade, DeepSeek AI Chip Report
AVGO•Broadcom shares dropped 1.52% on July 7 after a leading bank downgraded the AI chip maker, citing stretched valuation. The stock also slid 1.69% alongside a 2.2% decline in Nvidia after reports that DeepSeek is developing its own AI chip.
1. Bank Downgrades Broadcom on Valuation
On July 7, a major bank lowered Broadcom’s rating, arguing that the company’s current price–earnings multiple no longer reflects potential growth. This action triggered a 1.52% decline in Broadcom shares as investors reevaluated the chip maker’s near-term profitability.
2. DeepSeek AI Chip Report Spurs Sell-Off
Reports emerged that DeepSeek is developing its own AI accelerator, intensifying competition in the semiconductor sector. Broadcom shares slid an additional 1.69% in tandem with a 2.2% drop in Nvidia, as traders rotated away from established AI chip providers.
