Broadcom Stock Plunges 12.5%, Erasing $286 Billion in Market Value
AVGO•Broadcom shares plunged 12.5% after it forecast flat AI revenue growth for fiscal 2026 and 2027, wiping out $286 billion in market value. Analysts at Goldman Sachs and BofA Securities maintained Buy ratings and hiked price targets, viewing the selloff as a market-driven repricing not reflecting fundamental deterioration.
1. Earnings Miss and Forecast Revision
Broadcom reported quarterly results with revenue in line but flagged flat AI revenue growth through fiscal 2027. The company lowered segment margin forecasts, citing rising infrastructure, partnership and raw material expenses.
2. Sharp Market Reaction
Shares tumbled 12.5% on the day, erasing roughly $286 billion in market capitalization and dragging major tech indices lower. The selloff was the steepest single-day decline for the stock this year.
3. Analyst Response and Margin Concerns
Goldman Sachs, BofA Securities and other firms retained Buy ratings and raised price targets, describing the drop as a repricing of expectations. Investors are monitoring potential margin pressure if higher costs cannot be passed on to clients.
