Broadcom stock falls 22% in a month despite AI revenue surge
The gist
Chipmaker Broadcom's shares slid 22% over the past month to $292.21 despite AI chip revenue jumping 221%.
The drop shows election-driven policy fears can outweigh blowout AI growth.
How it unfolded
- Sep 2, 2026Broadcom reported Q3 FY2026 revenue of $29.6 billion, up 86% year over year, with AI semiconductor revenue of $16.7 billion, up 221% YoY. It guided Q4 revenue to $34.8 billion and AI semiconductor revenue to $21.7 billion.
- Nov 2, 2026Options trading volume was 281.78K contracts, with put options accounting for 43.43% of total transactions.
- Nov 3, 2026Broadcom closed at $332.13 per share, a market capitalization of $1.59 trillion, down 12.67% over the past month and 8.40% over 52 weeks.
Key terms
- hyperscalers
- Large cloud computing providers whose infrastructure can scale rapidly to meet growing demand.
- midterm elections
- US general elections held near the midpoint of a president's four-year term, when all House seats and about a third of Senate seats are contested.
- put options
- A financial contract giving its holder the right to sell an asset at a set price by a set date.
Source: Wikipedia