Stock Market Today, Dec. 15: Broadcom Slides After AI Margin Concerns Weigh on Stock
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By Josh Kohn-Lindquist – Dec 15, 2025 at 5:53PM ESTNASDAQ: AVGOBroadcomMarket Cap$1.7TToday's Changeangle-down(-5.65%) $20.32Current Price$339.61Price as of December 15, 2025 at 3:59 PM ETAI growth, margin strain, and intensifying chip rivalry are forcing investors to reassess this tech heavyweight, today, Dec. 15, 2025.ExpandNASDAQ: AVGOBroadcomToday's Change(-5.65%) $-20.32Current Price$339.61Key Data PointsMarket Cap$1.7TDay's Range$337.55 - $361.9352wk Range$138.10 - $414.61Volume3.4MAvg Vol24MGross Margin64.71%Dividend Yield0.66%Broadcom (AVGO 5.65%), designer and supplier of semiconductor devices and infrastructure software solutions worldwide, closed Monday’s session at $339.86, down 5.6%. Trading volume reached 55.8 million shares, which is approximately 126% above its three-month average of 24.7 million shares.How the markets moved todayMonday’s trading featured renewed pressure on Broadcom after recent earnings, with investors focusing on AI-driven revenue growth versus margin pressure and valuation. The S&P 500 (^GSPC 0.16%) slipped 0.16% to finish at 6,816, while the Nasdaq Composite (^IXIC 0.59%) fell 0.59% to close at 23,057. Rivals Qualcomm and Nvidia both gained modestly, underscoring how competition and shifting sentiment across the chipmaking industry are shaping expectations for Broadcom’s AI chip demand and profitability.What this means for investorsBroadcom shares continued their post-earnings slide from Friday, as Wall Street worried over management's mention of lower AI margins. Although Broadcom's projected first-quarter revenue of $19.1 billion exceeded estimates, management guided for a 100-basis-point decline in gross margin due to lower margins from its AI systems. As the tech industry hurtles toward an AI-powered world, these margin concerns reinforced investor debate over growth quality versus profitability.While Broadcom's earnings and guidance were satisfactory -- most analysts increased their price targets -- the company was priced for perfection at 72 times free cash flow before Thursday's earnings and simply didn't meet these flawless expectations. Ultimately, the launch of a new AI accelerator by Qualcomm and ongoing competition with Nvidia create an intensifying AI chip rivalry, which will keep Broadcom's stock volatile.About the AuthorJosh Kohn-Lindquist is a contributing Motley Fool stock market analyst covering consumer goods, industrials, and technology stocks. Previously, Josh was a senior mutual fund accountant at Gemini Fund Services. He holds a bachelor’s degree in business management from the University of South Dakota.TMFJorykoX@Jorykoli