Broadcom’s Trillion-Dollar Rebound Signals Renewed Confidence Amid AI and Semiconductor Volatility
Broadcom (AVGO) has reclaimed its position among trillion-dollar market cap companies, surging over 70% since April's trade-related downturn. The rebound follows eased concerns over semiconductor tariffs and a $10 billion buyback program that underscores management's bullish stance.
China exposure initially weighed on the stock, with more than half of semiconductor revenue at risk. Sentiment shifted when semiconductors were excluded from new tariffs, while VMware's software segment provided insulation. DeepSeek's open-source AI model briefly rattled investors, but Broadcom's strong AI revenue growth and optimistic guidance restored faith in its market leadership.