Broadcom Stock Plunge Seen as Buying Opportunity Amid AI Chip Demand
Broadcom shares tumbled 11% post-earnings despite surpassing estimates and lifting guidance, a selloff Jim Cramer attributes to market overreaction. The chipmaker's ties to Alphabet, Meta, and emerging AI players like Anthropic position it at the epicenter of semiconductor demand.
Margin concerns surfaced after CFO commentary on component cost passthroughs, while CEO Hock Tan's acknowledgment of potential client in-house chip development rattled investors. The disconnect between fundamentals and price action mirrors crypto market volatility - where narratives often overshadow on-chain metrics.
CNBC's Investing Club maintained its hold rating but raised Broadcom's price target to $425, suggesting institutional confidence in the long-term AI infrastructure thesis. The episode highlights how even blue-chip tech plays aren't immune to the sentiment swings familiar to digital asset traders.
