Broadcom shares fall 4.5% to $328.75 amid AI chip growth and market sell‑off
Broadcom’s stock dropped 4.5% to $328.75 on Friday as the Nasdaq recorded its steepest weekly loss since June, even as the company reported strong AI‑driven revenue growth.
Key points
- Broadcom closed at $328.75, down 4.52% from the previous close.
- The company reported Q3 revenue of $29.6 billion, up 86% YoY, with AI semiconductor revenue at $16.7 billion (56% of total).
- CEO Hock Tan cautioned against speculative excitement around AI investments at an October 13 conference.
- Management projected Q4 revenue of about $34.8 billion, implying roughly 93% annual growth.
- The Nasdaq’s steepest weekly loss since June coincided with 30 million shares traded, above the 30‑session average of 24 million.
Broadcom (AVGO) ended Friday’s session at $328.75, down $15.58, or 4.52%.
Shares of Broadcom closed at $328.75 on October 16, 2026.
About 30 million shares changed hands, exceeding the 30‑session average of 24 million.
The Nasdaq logged its steepest weekly loss since June.
CEO Hock Tan warned about speculative excitement around AI investments at a conference on October 13.
Fiscal third‑quarter revenue reached $29.6 billion, an 86% increase from the prior year.
GAAP diluted earnings were $2.68 per share and adjusted earnings were $3.32 per share.
Free cash flow amounted to $13.7 billion, representing 46% of quarterly revenue.
Management projected fourth‑quarter revenue of about $34.8 billion, implying roughly 93% annual growth.
Broadcom partnered with OpenAI on the Jalapeño inference chip, showcased in June 2026.
AI semiconductor revenue totaled $16.7 billion in fiscal Q3 2026, accounting for 56% of total revenue.
Diluted earnings per share doubled from $3.92 to $7.83 over the past year.
Operating margin for the twelve months to August 2, 2026 was 48.5%, up from 39.0% a year earlier.
The stock price was 31.5% below its highest close of the past year, which occurred on June 2.
Shareholders experienced a 5.7% loss over the past twelve months, while the S&P 500 returned 16.2%.
Your questions, answered
What caused Broadcom’s share price to fall on Friday?
The stock fell 4.52% to $328.75 as the Nasdaq experienced its steepest weekly loss since June, despite Broadcom’s strong Q3 earnings.
How did Broadcom’s AI chip revenue perform in Q3 2026?
AI semiconductor revenue reached $16.7 billion, accounting for 56% of the company’s total Q3 revenue.
How does this story make you feel?
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