Broadcom (NASDAQ:AVGO) closed at $339.86, down 5.6%, with trading volume at 55.8 million shares, significantly above the three-month average. Investors focused on AI-driven revenue growth versus margin pressure and valuation while S&P 500 and Nasdaq Composite fell slightly.

Qualcomm and Nvidia gained modestly, highlighting competition and shifting sentiment across the chipmaking industry. Broadcom shares slid post-earnings as Wall Street expressed concerns over lower AI margins. Despite exceeding revenue estimates, management projected a decline in gross margin due to lower margins from AI systems.

Broadcom’s earnings and guidance were satisfactory, but stock prices were high, leading to a post-earnings slide. Analysts increased price targets, but concerns over growth quality versus profitability remained. Competition with Qualcomm and Nvidia in the AI chip market will likely keep Broadcom’s stock volatile.

Read more at Yahoo Finance: Broadcom Slides After AI Margin Concerns Weigh on Stock