By Trefis Team
Publication Date: 2026-08-24 21:34:00
The chipmaker’s AI business is booming, but the stock just hit a rough patch, forcing investors to weigh a powerful history against a pricey present.
At Broadcom (AVGO), the story from management is one of almost overwhelming demand. On its latest call, the company described demand for its AI-related chips as “simply insatiable,” with bookings for AI semiconductors in the second quarter topping $30 billion against the $10.8 billion it actually shipped. That kind of momentum has given management visibility that it says “runs all the way to 2028 right now.” Yet, even with that backdrop, the stock has pulled back about 14% from its recent high. For investors watching from the sidelines, that raises a critical question: is this a chance to buy into a powerhouse on a rare sale, or is it a warning sign?
What Happened After Past Broadcom Selloffs
When a high-quality stock pulls back, the first place to look for clues is its own history. In…