Broadcom (AVGO) Stock Is Down After Q3 Earnings: Is It Too Soon to Buy the Dip?

Broadcom fell nearly 3% after posting Q3 earnings despite revenue surging 85% year-over-year and AI semiconductor revenue jumping 221% to $16.7 billion. The chipmaker beat Wall Street expectations for the quarter but issued Q4 guidance that missed some analyst forecasts, triggering the selloff.

AVGO has dropped 15% over the past month, pushing its forward price-to-earnings ratio down to 34X. The valuation compression makes the stock more accessible than recent highs, but the muted guidance suggests management sees near-term headwinds that could pressure shares further.

The disconnect between strong Q3 results and cautious Q4 guidance highlights the market's sensitivity to forward-looking statements from AI infrastructure plays. Broadcom's AI chip business now represents a significant revenue driver, and any deceleration in growth expectations moves the stock.