Why Broadcom Stock Is Tumbling Again Today
Oops, something went wrong Shares of the semiconductor company Broadcom (NASDAQ: AVGO) were falling this morning as investors continued to exit the broader tech sector amid tariff concerns. Broadcom's stock is down nearly 18% over the past month on growing fears that the massive spending in the artificial intelligence (AI) space could soon come to an end. Broadcom's stock was down by 3.8% as of 11:08 a.m. ET. Most tech investors are concerned that President Trump's tariff threats could cause the cost of many goods in the U.S. to spike. While the administration has declined to enact some tariffs, others have already begun, and a slew of new ones could kick in over the next few days. As a result, tech companies may pull back on their AI spending. Already, Microsoft has reduced its data center leasing, which has caused some investors to wonder if other technology companies will soon reverse course on AI spending as well. Additionally, some economists have recently raised their estimates of the likelihood that a recession will occur this year or next year, and some are concerned that slowing growth mixed with the high prices of goods could cause stagflation. Recession and stagflation are scary possibilities for tech businesses, and it's certainly important for investors to continue watching for changes to the economy. If either or both occur, it could certainly slow business growth down across nearly every sector. While there are legitimate concerns about the U.S. economy, I think at least part of the sell-off in AI stocks in general, and Broadcom specifically, is a little too drastic. Artificial intelligence is just getting started, and nearly every major tech company is orienting itself around AI. That's going to lead to a boom for semiconductor companies in the coming years, even if broader economic forces temporarily slow things down. Nothing has changed about Broadcom's business or its AI opportunities over the past few months, yet its stock has tumbled. This is opening up a buying opportunity for tech investors looking for a solid long-term bet on artificial intelligence. Before you buy stock in Broadcom, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Broadcom wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $672,177!* Now, it’s worth noting Stock Advisor’s total average return is 815% — a market-crushing outperformance compared to 162% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of March 24, 2025 Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Why Broadcom Stock Is Tumbling Again Today was originally published by The Motley Fool Sign in to access your portfolio