$Broadcom(AVGO)$ Broadcom plunged 12.59% after its AI revenue outlook failed to meet the market’s most optimistic expectations, sparking a classic “buy the rumor, sell the news” reaction across the semiconductor sector. AMD fell 3.56%, while the leveraged semiconductor ETF dropped 6.36%. Nvidia, however, stood apart from the selloff, gaining 1.94%. At the same time, the Dow Jones reached a record high, suggesting investors may be rotating out of high-growth AI names and into more defensive value stocks. With Citi maintaining a $500 price target on Broadcom, is this simply a healthy correction—or the first sign of a broader shift away from the AI trade?
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