The Broadcom Sell-Off: Why This Is a Huge Warning Flag for Artificial Intelligence (AI) Investors

Broadcom's stock plummeted 16% despite posting strong Q2 earnings with 48% revenue growth, as the company failed to raise full-year guidance. The sell-off highlights a critical lesson for AI investors: high-valuation stocks trading at 100x earnings require consistent beat-and-raise quarters, and missing expectations can trigger significant losses regardless of underlying business strength.