Broadcom -13%, Drags Sector: Is $420 a Bottom?

Broadcom cratered 12.59% as AI revenue guidance fell short of peak expectations, triggering a 'buy the rumor, sell the news' unwind that dragged AMD down 3.56% and the 3x semiconductor ETF down 6.36% — while Nvidia bucked the trend, edging up 1.94%. Meanwhile, the Dow Jones hit an all-time high, signaling a clear rotation from chips into value as institutions called it 'time to take profits.' With Citi eyeing a $500 target, is this a healthy pullback or the beginning of a broader AI bull market reversal?

avatarMrzorro
09:42
Broadcom Sees Biggest Short Volume Amid $300 Billion Market Cap Wipeout $Broadcom(AVGO)$   shares slumped more than 7% Friday after attracting this year’s heaviest trading in borrowed shares that were sold short as bears took advantage of the chip giant’s disappointing AI sales outlook. The three-day stock selloff is on pace to wipe out more than $300 billion from the company’s market capital, shaving some of its 54% record-breaking rally over the past year that turned Broadcom into a $2.28 trillion company. If losses hold through the end of the trading day, the market could drop to $1.89 trillion. Short sellers piled onto the stock just as market makers are selling into weakness to manage their risk in the
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avatarChilliMili
06-05 19:26
$Broadcom(AVGO)$  Still a long term buy 
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avatarLanceljx
06-05 18:10
$Broadcom(AVGO)$  At this stage, it looks more like a healthy reset than the start of an AI bull market reversal. Broadcom's selloff was driven less by weak fundamentals and more by expectations running ahead of reality. When a stock rallies aggressively into earnings, even strong results can disappoint if guidance does not materially exceed what investors have already priced in. The fact that NVIDIA rose while Broadcom fell suggests investors are becoming more selective rather than abandoning the AI theme altogether. The Dow reaching new highs while semiconductors pull back also points to sector rotation, not necessarily a market-wide risk-off event. After an extended AI-led rally, it is normal for capital to rotate into financials, industri
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avatarDoTrading
06-05 17:39

Healthy Market... Or Just a Healthy Illusion?

The Dow Soars, But Something Doesn't Add Up If you only watched the Dow Jones today, you'd think Wall Street had another fantastic session. Dow Jones: +875 points (+1.7%) $S&P 500(.SPX)$ : +0.4% Nasdaq: -0.1% $NVIDIA(NVDA)$ $Microsoft(MSFT)$ At first glance, it looks bullish. But under the surface, the market is telling a much more complicated story. In fact, 362 S&P 500 stocks advanced today, while only 140 declined. Yet despite that overwhelmingly positive breadth, the S&P barely moved higher and the Nasdaq actually finished in the red. Why? Because a handful of mega-cap tech stocks have become so dominant that they can overshado
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Healthy Market... Or Just a Healthy Illusion?
avatar天天是周末
06-05 14:53

The $280B Broadcom Melt-down: How to Profit Safely Without Catching a Falling Knife

Watching a stock like $Broadcom(AVGO)$ lose 13% of its value in a single session can be terrifying if you own it, but thrilling if you don't. Before you rush in to "buy the dip" at $420, you need to understand the hidden market mechanics pulling the strings behind the scenes. The headlines are screaming about Broadcom's massive sell-off. But if you look under the hood, Broadcom’s core business is completely healthy. Their AI chip revenue alone skyrocketed 143% to $10.8 billion. The selloff demonstrates the challenging dynamics of the current AI trade, where "the business can still be growing fast, and the stock can still get hit if expectations are even faster." While Broadcom's AI business continues expanding rapidly, it wasn't enough to satisfy
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The $280B Broadcom Melt-down: How to Profit Safely Without Catching a Falling Knife
avatarZhengxi
06-05 11:25
Wait for lower price to enter
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avatarPuts puts puts
06-05 10:32
$Broadcom(AVGO)$   The high-flying AI semiconductor trade just hit its first major patch of turbulence. As highlighted in image_13.png, Broadcom (AVGO) experienced a sharp after-hours plunge, with shares tumbling 12.57% following the release of its Q2 financial results. On paper, Broadcom’s Q2 numbers actually beat top-and-bottom-line Wall Street estimates. Total revenue rose 48% year-over-year to a record $22.2 billion, powered by blistering demand for AI semiconductors, which more than doubled year-over-year to hit $10.8 billion. However, the stock had spent the preceding months surging to relentless all-time highs, pricing in near-perfection. This left the earnings print highly vulnerable, turning "good" forward AI guidance into a cat
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avatarPuts puts puts baby
06-05 09:56
$Broadcom(AVGO)$  Is this a structural warning sign, or an overreaction worth capitalizing on? Here is my breakdown: 1. The Long-Term Thesis is Structurally Intact This sell-off is driven by near-term valuation digestion, not structural decay. Broadcom's two massive growth engines remain dominant: Custom ASICs: Hyper-scalers are desperate to reduce their reliance on expensive, generic GPUs. AVGO’s custom silicon pipeline remains the premier choice for custom AI chips. VMware Integration: The enterprise cloud software transition is a high-margin, recurring revenue tailwind that provides a solid defensive floor underneath the cyclical semiconductor business. 2. Will it Break Below $400? Psychological round numbers like $400 are critical because
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avatarMrzorro
06-05 07:59
Broadcom Plunges 12%, but Smart Money Is Buying the Dip The AI infrastructure sector experienced a roller-coaster session on Thursday. After $Broadcom(AVGO)$   plunged more than 12% following its earnings report, semiconductor and AI hardware stocks came under heavy pressure in early trading, raising concerns that weakness in one of the industry's key AI infrastructure leaders could signal a broader cooling of the AI trade. However, sentiment improved rapidly as the session progressed. Several AI infrastructure names recovered their early losses, with $Marvell Technology(MRVL)$   and 
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avatarPawsAndProfits
06-05 06:07

Continued narrative that tech is overbought

Disclaimer: Whatever I say or post doesn't act as financial advice, so please do your due diligence before making any decision. The headlines today are still saying that the tech sector is on a euphoric and overbought level. So for those who are already in the game, congratulations. For those who are not, be careful if you are on the bull side. @PawsAndProfits - Specialist in combining FA and TA for options selling and swing trading.[举爪]    
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Continued narrative that tech is overbought
avatarMrzorro
06-04 22:04
Broadcom's AI Guide Missed. Google And Nvidia Fears Made It Worse $Broadcom(AVGO)$   reported another powerful AI quarter, but the stock still plunged 13% in after-hours trading. Let us take a closer look. FY26Q2 Core Financial Indicators – Revenue: $22.19 billion, up 48% YoY and 15% QoQ, slightly beating the market consensus estimate of $22.12 billion and exceeding prior guidance of $22.0 billion. – Non-GAAP Gross Margin: 77.1%, down 2.3 percentage points YoY but up 0.1 percentage points QoQ. Non-GAAP Operating Margin: 67.3%, up 2 percentage points YoY and 0.9 percentage points QoQ, marking the fourth consecutive quarter of QoQ improvement. – Non-GAAP Net Income: $12.07 billion, up 55% YoY and 19% QoQ, bea
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avatarG168
06-04 21:10
$Broadcom(AVGO)$  today's decline appears to be more about expectations being too high than about the business suddenly deteriorating.Thus, I remain positive about their long term AI position.
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avatarEt1502
06-04 20:50
$Broadcom(AVGO)$  Quarter to Quarter results do not give a good guidance & indication of future earnings. It is always a short-sightedness view. With AI and technological products advancing rapidly, the related chips companies such as AVGO, are in the frontline to reap a substantial profitabilty. Hence shares price trending north.
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avatarCarlone
06-04 20:42
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avatarPandaExpress
06-04 20:22
$Broadcom(AVGO)$  why people still trust this company. they have destroyed so many businesses in the past to keep themselves afloat. I hope they go down hard
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avatarLanceljx
06-04 18:47
$Broadcom(AVGO)$  Broadcom's selloff looks more like an expectations reset than a breakdown of the core thesis. AI revenue still grew strongly, and the custom ASIC opportunity with hyperscalers remains one of the most compelling themes in AI infrastructure. The VMware acquisition also continues to strengthen Broadcom's software cash flow profile. The issue is valuation. After a huge rally and record highs, investors were expecting not just strong results, but accelerating guidance. When expectations become extreme, even good earnings can trigger profit-taking. Whether AVGO falls below $400 depends more on market sentiment than fundamentals. If AI-related names continue derating and investors rotate away from high-multiple growth stocks, a mov
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avatarMeme_Tiger
06-04 18:27

Broadcom Earnings Miss (Citi Buy 500 / Jefferies Buy 550)

$Broadcom(AVGO)$ AI order backlog $30B+, visibility extending to 2028, but gross margin pressure triggers after-hours plunge of over 13% Broadcom (AVGO) suffered a sharp setback in after-hours trading following its earnings release 📉 Closed down at 479.23 After-Hrs: $413.21 (-13.78%) Q3 guidance overall slightly beat market expectations, but the gross margin guidance came in significantly below expectations, becoming the main source of selling pressure in the market.
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Broadcom Earnings Miss (Citi Buy 500 / Jefferies Buy 550)
avatarECLC
06-04 17:51
Market sentiment decides the price. Ride on bull run hitting a pause.
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avatarSG DLC News
06-04 13:33

Broadcom Sinks 13% Post-earnings Release; 3x Short DLC Gains 38%

$Broadcom(AVGO)$ sank up to 13.8% overnight after reporting earnings post-US market close on Wednesday (3 June). Despite reporting another strong quarter, investor sentiment turned negative as Broadcom’s guidance for AI semiconductor revenue came in below market expectations. As of 11am Singapore time, Broadcom was trading down about 12.5%. Amplifying the move, the $AVGO 3xShortSG280420(9FOW.SI)$ surged close to 38%, with the $AVGO 3xLongSG280420(Z8TW.SI)$ down a similar magnitude. Investors who view the selloff as an overreaction and anticipate a rebound during regular US trading hours may consider the $AVGO 3xLong
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Broadcom Sinks 13% Post-earnings Release; 3x Short DLC Gains 38%
avatarcalebcai95
06-04 08:25
$Broadcom(AVGO)$ so fast lose steam already
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