<div id="readability-page-1"><p>Broadcom (AVGO) shares dropped by 12.6% on Thursday after the AI chipmaker reported solid but unexceptional earnings. The AI infrastructure company beat fiscal second-quarter earnings estimates by about 2%, but barely scraped past revenue estimates.</p><h3>Claim 55% Off TipRanks</h3>High conviction NVDA bears now have this Tradr ETF <p>Stocks like Broadcom and competitors Nvidia (NVDA) and Advanced Micro Devices (AMD) have had incredible runs, and now are priced for perfection. Anything less than a stellar earnings report is going to land AI infrastructure high-flyers in the doghouse. </p> <h2><strong>Asking Too Much?</strong></h2> <p>To understand how demanding investors have become of these names, the selloff was blamed on Broadcom CEO Hock Tan's failure to raise the company's full-year target for AI chip sales. </p> <p>It was only three months ago, on March 4, that Tan first said Broadcom's AI chip revenues could exceed $100 billion for the year. </p> <p>Back then, this news was treated as a revelation, and Broadcom shares vaulted higher by 23%. Now, it's a disappointment.  </p> <h2><strong>Charting Broadcom</strong></h2> <p>Even after Thursday's decline, Broadcom shares have gained over 20% so far this year, and have soared over 60% over the past 12 months. Thursday's move seems like an overreaction and may present a buying opportunity for Broadcom. </p> <p>Broadcom closed on Thursday at $418. This means the post-earnings selloff merely erased about a week's worth of gains. Prior to Thursday, the last time Broadcom traded at $418 was on May 28.</p></div>

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<p>Broadcom shares dropped 12.6% after reporting solid but unexceptional Q2 earnings, barely beating revenue estimates and failing to raise its full-year AI chip sales target. Despite the selloff, the stock remains up significantly year-to-date. The decline reflects high investor expectations for AI infrastructure stocks, with analysts suggesting the overreaction may present a buying opportunity.</p>

Broadcom's 'Good' Wasn't Good Enough—Now the Setup Gets Interesting