Broadcom shares slide after earnings, AI chip growth fuels buying interest

Broadcom shares fell about 5% during mid‑day trading, touching $371.90 and closing near $374.45, after the company reported quarterly earnings that missed expectations only modestly but prompted a 20% drop from its all‑time high.

Analysts note the dip may be an overreaction; the firm’s AI semiconductor revenue surged 143% year‑over‑year to $10.8 billion in Q2 and the company projects more than $100 billion in AI chip revenue by 2027, driven by customers such as Alphabet, Meta, Anthropic and OpenAI.

Positive sentiment remains, with several analysts raising price targets (e.g., KeyCorp to $575, TD Cowen to $500) and describing Broadcom as a “core AI winner.” However, broader chip‑sector weakness and recent insider selling provide a modest headwind.