Broadcom Inc. (NASDAQ:AVGO) stock was trading lower by nearly 3% during Wednesday’s premarket session as semiconductor stocks came under pressure amid a broader risk-off move. Nasdaq futures fell 1.25%, while S&P 500 futures declined 0.73%.
Broadcom Tracks Broader Tech Weakness
The early decline appears tied to both market-wide weakness and lingering post-earnings pressure rather than any new company-specific catalyst.
Last week, the stock came under pressure despite reporting strong fiscal second-quarter results. Investors were disappointed after management maintained, rather than raised, its forecast for more than $100 billion in AI semiconductor revenue by fiscal 2027. Broadcom’s third-quarter AI revenue outlook also largely matched Wall Street’s already elevated expectations.
The unchanged AI outlook triggered profit-taking across AI-related stocks, as investors who had pushed shares to premium valuations looked for stronger signs of accelerating growth.
