Broadcom Crashed 15% on a Beat. Is It a Buy?
The question everyone is asking: if the numbers were good, why the crash, and is this the entry?
First, look at the data
Q2 AI semiconductor revenue came in at 10.8 billion, up 143% year on year. Q3 guidance puts AI chips at 16 billion, over 200% growth. Margins and cash flow remain best in class. On the fundamentals, nothing broke.
Why did it still fall
The stock was priced for a guidance raise on the full year 100 billion AI target, and management held it flat. When a name is this loved, meeting expectations reads as a disappointment. That is an expectations problem, not a demand problem.
My judgment
I am constructive on the custom-silicon story and think it compounds for years. But after a 15% gap down, I would scale in rather than chase, and let tonight's jobs data and the volatility settle first. Great franchise, just respect that crowded trades unwind hard. Not investment advice.
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