Broadcom shares slumped more than 14% on Thursday, dragging chip peers lower, after the company's results fell short of lofty expectations around demand for its custom AI chips business.The premarket losses, if sustained, will erase more than $315 billion from the company's market value of about $2.268 trillion, in one of the biggest one-day wipeouts ever.Its crucial role in helping design in-house processors of firms like Alphabet and Meta that serve as alternatives to Nvidia's costly chips has made Broadcom one of the ‌biggest winners of ⁠the AI ⁠boom.After years of treading water, its stock has jumped more than eightfold since ChatGPT's 2022 launch.Shares have climbed 38% this year, as of last close, including a 15% rally in the two weeks ahead of its earnings after rival Marvell Technology's strong results.But Broadcom faces ​tougher competition and its eye-watering gains have left little room for error, analysts said, adding the decision to reiterate, rather than raise, its $100 billion AI revenue forecast for fiscal 2027 disappointed investors.Its second-quarter revenue of $22.19 billion also missed expectations, while ​its current-quarter AI chip sales forecast of $16 billion was slightly below Wall ⁠Street estimates.Still, ‌the $16 billion would mark an over three-fold jump from about $5.2 billion a year ago. The $100 billion ​forecast given in ​March also shows how quickly the company has gained ground in the chip race. AI ⁠revenue stood at just $20.2 billion in fiscal 2025.It is "a classic case of ​very high expectations meeting a market that wanted perfection," Matt Britzman, senior equity ​analyst at Hargreaves Lansdown, said. "Broadcom is one of the more exciting names in the AI infrastructure buildout, but it also came into results as one of the higher-risk names."Sector feels the heatThe results sparked a selloff in chip stocks, with Marvell down more than 6%, while Nvidia, AMD, Intel, Micron, and Qualcomm fell between 1% and 7%. The stocks had gained sharply earlier this week thanks to a flurry of positive announcements at Computex.To be sure, Broadcom CEO Hock ‌Tan said the company now expects to ship more than 10 gigawatts' worth of AI chips in 2027, a slight increase from previous estimates.Executives also said the company was "very comfortable" amid ​the memory chip supply ​crunch, having secured supply for ⁠2026 and 2027.Confident of the company's long-term prospects, at least 22 analysts raised their price targets on Broadcom's stock, pushing the median view to $500, according to LSEG data. That represented a more than 4% upside to the stock's last ​close.The stock trades at 29.90 times its forward earnings estimates, compared with Marvell's 61.70 multiple and the broader S&P 500 index's 27.94."We suspect the shares may take a pause for the next couple of quarters. But the story gets interesting again once we enter 2027," Bernstein analyst Stacy Rasgon said in a note."If we have to wait a quarter or two for that story to re-emerge, that's OK, we'll wait for it."