Broadcom Shares Tumble Despite Surging AI Revenue. Should Investors Buy the Dip?

Broadcom shares fell 7.49% despite strong quarterly results with AI revenue surging 143% to $10.8 billion and overall revenue up 48% to $22.19 billion. The decline was driven by investor disappointment that the company did not raise its fiscal 2027 custom AI chip sales guidance above $100 billion, and slower-than-expected software segment growth. However, analysts view the stock as attractively valued at a forward P/E of 22.5x given its growth trajectory and locked-in supply chain advantages.