Broadcom Stock Drops 10% Despite Q3 Earnings Beat, Driven by Weak Guidance and AI Market Sentiment

Broadcom`s stock price fell significantly due to investor concerns about the company`s fourth-quarter revenue guidance, which was slightly below analyst expectations. Although Broadcom exceeded earnings estimates for the third quarter, the positive results were not substantial enough to satisfy investors in the current market climate. The company`s strong revenue growth was primarily attributed to its acquisition of VMware, with organic revenue growth remaining modest. Despite exceeding earnings projections and demonstrating solid cash flow, Broadcom`s stock performance highlights the heightened expectations investors have for companies in the AI sector.