Why Broadcom Stock Fell 14.1% in December | The Motley Fool

Why Broadcom Stock Fell 14.1% in December | The Motley Fool

By Beth McKenna
Publication Date: 2026-01-08 22:28:00

Despite December’s pullback, Broadcom stock still finished 2025 with a strong return of 50.4%.

Shares of Broadcom (AVGO +2.78%), which designs and develops semiconductors and infrastructure software, declined 14.1% in December, according to data from S&P Global Market Intelligence.

For context, last month the S&P 500 index was essentially flat (it had a 0.06% return, to be exact), while the tech-heavy Nasdaq Composite index’s return was slightly negative, at about negative 0.5%.

For even more context, while Broadcom stock pulled back last month, it still finished 2025 with a strong return of 50.4%. Last year, the S&P 500 and Nasdaq Composite returned 17.9% and 21.1%, respectively. Notably, Broadcom also outperformed shares of artificial intelligence (AI) chip and tech giant Nvidia, which returned 38.9% in 2025.

Now let’s dig into why Broadcom stock fell 14.1% in December.

Image source: Getty Images.

Quarterly results were great, but investors were concerned about gross margin…