Why Broadcom Stock Sank 5.6% Today

By Johnny Rice – Dec 15, 2025 at 6:47PM ESTKey PointsBroadcom’s pullback reflects broader weakness in AI-related stocks as sentiment cools. The company's margins are lower for its AI business.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: AVGOBroadcomMarket Cap$1.7TToday's Changeangle-down(-5.59%) $20.12Current Price$339.81Price as of December 15, 2025 at 4:00 PM ETBroadcom just posted big numbers, yet the stock is still sinking.Shares of Broadcom (AVGO 5.59%) fell on Monday, finishing the day down 5.6%. The slide came as the S&P 500 and Nasdaq Composite lost 0.2% and 0.6%, respectively. Broadcom stock fell today, along with much of the artificial intelligence (AI) market, as investors continue to rotate out of the sector following earnings from both Broadcom itself and fellow tech giant Oracle. ExpandNASDAQ: AVGOBroadcomToday's Change(-5.59%) $-20.12Current Price$339.81Key Data PointsMarket Cap$1.7TDay's Range$337.51 - $362.0052wk Range$138.10 - $414.61Volume66MAvg Vol24MGross Margin64.71%Dividend Yield0.66% Record earnings weren't enough to calm market nerves Despite reporting record sales and net income as AI sales soar, investors were disappointed by the impact its AI is having on margins. During the company's earnings call, CEO Hock Tan said that its AI business has lower gross margins than its other segments, and as AI sales become a larger part of its total revenue mix, overall margins will be negatively impacted moving forward. Image source: Getty Images. Given Broadcom's headline numbers, these issues would mostly be overlooked during a less fraught time in the market, but as anxiety grows over an AI bubble, investors are looking for any signs of weakness. Especially given that Broadcom's earnings were released just a day after Oracle's own report, showing its AI-related capital expenditures are ballooning. Broadcom needs demand for AI to remain white hot. I'm not confident enough that it will to recommend Broadcom stock at this price. About the AuthorJohnny Rice is a contributing writer for The Motley Fool covering tech stocks. He previously contributed to various financial publications.TMFJohnnyRiceRead NextDec 15, 2025 •By Timothy GreenHere's The Real Reason Why Broadcom Stock Tumbled Last WeekDec 15, 2025 •By Daniel FoelberAfter Outperforming Every "Magnificent Seven" Stock in 2025, Is Broadcom Still a Buy for 2026?Dec 13, 2025 •By Danny Vena, CPAPrediction: These 2 Unstoppable Stocks Will Join Nvidia, Apple, Alphabet, and Microsoft in the $3 Trillion Club by 2027Dec 13, 2025 •By Danny Vena, CPABroadcom's AI Accelerator Business Is Booming, But the Stock Is Falling.

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