Broadcom fell sharply by 17.7% in three days, facing the worst blow since 2020 to its "Google Chain" core

Chip giant Broadcom faced a fierce and continuous sell-off in the market after releasing its financial report last week. This round of selling has continued into this week. Broadcom's stock price fell again by 5.6% on Monday, bringing its cumulative decline over three trading days to 17.7%. According to Dow Jones market data, this performance marks the worst three-day decline for the company since March 18, 2020. Currently, Broadcom's stock price remains slightly down in after-hours trading in the U.S. The sharp drop in stock price has had a significant direct impact on investors, resulting in a massive evaporation of wealth. In just three trading days, Broadcom's market value has wiped out over $300 billion, a loss roughly equivalent to the total market value of its competitor AMD. The dramatic shrinkage in market value has also changed the ranking of U.S. tech giants by market capitalization. Due to the continued pressure on Broadcom's stock price, Meta's market value has once again surpassed Broadcom, returning the social media giant to the position of the sixth-largest company by market value in the U.S. This change, while partly due to a moderate rise in Meta's stock price, is primarily driven by Broadcom's sharp decline. For the market, this change in ranking is a signal that cannot be ignored, reflecting the rapid flow and reassessment of capital among tech giants. Recently, amid increasing concerns about AI, with Broadcom's stock price plummeting over 17% in three days, both the "OpenAI chain" and the "Google chain" have suffered heavy blows. This sell-off was ignited by two heavy punches. Wall Street Journal reported that first, the core target of the "Google chain"—Broadcom—released its financial report last week, and although its sales reached a record high, its revenue forecast for AI business did not meet Wall Street's extremely high expectations. Secondly, the core company of the "OpenAI chain"—Oracle—just released a disappointing financial report, and it was revealed that the completion date for some data centers built for ChatGPT owner OpenAI might be delayed from 2027 to 2028, directly raising market concerns about the pace of AI infrastructure development