Broadcom Inc. (AVGO) shares are experiencing a decline today as investors engage in profit-taking following a significant surge in the stock's value. The semiconductor giant recently joined the $1 trillion market cap club after reporting impressive fourth-quarter earnings and providing strong guidance for AI-related revenue growth. Despite a 51% year-over-year increase in revenue to $14.05 billion, the figure fell slightly short of estimates, which may have contributed to the current pullback. The stock had been on a remarkable upward trajectory, gaining nearly 40% over the past week, driven by a 220% increase in AI revenue and positive commentary from CEO Hock Tan regarding the future market potential for AI chips.
Broadcom's shares are down 3.41% to $232.04 as of 1:31 pm on Wednesday, compared to the previous close of $240.23, and have decreased by 3.14% from the opening price of $239.55.