Broadcom Shares Lag Despite AI Growth; Investors Weigh Valuation
Broadcom stock has fallen about 7% over the past year and is roughly 33% below its June peak. The company has raised its AI revenue outlook and expects AI chip sales to double in each of the next two fiscal years. A June revenue miss and a later rival chip deal with Google weighed on shares.
Broadcom closed at $321.68 on October 23, down 6.6% year over year and 32.9% below its June 3 close of $479.23. Wall Street’s average target was $529.10. Its next quarterly update is scheduled for December 9, with guidance of $34.8 billion revenue and $21.7 billion in AI chip sales.
In June, revenue of $22.19 billion narrowly missed the $22.27 billion consensus, and shares dropped 12.59% the next session. August brought a Google custom-chip pact with Marvell, including a warrant for up to 58,970,907 Marvell shares at $206.58; Broadcom fell about 5%.
Broadcom’s valuation debate could affect investors, employees with stock-based pay, and suppliers tied to its AI chip roadmap. If AI demand meets forecasts, data-center operators and cloud customers may gain capacity; if growth disappoints, pension funds and retail holders may feel sharper swings. Broader access to AI services may depend on whether chip supply and pricing stay stable.