Broadcom Beat on Everything, Stock Still Fell 13% — Why

$Broadcom (AVGO.US)$ 's quarter was fundamentally strong, but the stock had already priced in a much bigger AI surprise. Revenue, AI semiconductor sales, earnings and free cash flow all looked powerful, but the market wanted management to raise the ceiling.

The long-term AI story remains intact. Broadcom is still one of the most important custom AI chip and AI networking suppliers outside Nvidia. The near-term risk is valuation: when expectations are this high, even a strong quarter can trade like a disappointment.

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