Core Viewpoint - Broadcom Inc. is experiencing a consolidation phase after a significant drop in share price, which fell nearly 12% following the earnings report, approaching a support level around $330 [1][3]. Group 1: Stock Performance - The recent selloff in Broadcom shares may halt at the identified support level, potentially leading to a rebound [1]. - The stock is currently in a downtrend due to sellers undercutting each other to attract buyers, resulting in insufficient demand to absorb the available supply [2]. Group 2: Support Level Dynamics - Support is characterized as a price level where there is substantial buying interest, which can prevent further declines in stock price [1][4]. - Remorseful sellers, who regret selling at lower prices, may contribute to the formation of support as they place buy orders when the stock returns to previous support levels [4][5]. - Stocks often rally after reaching support due to impatient buyers who fear missing out on potential price increases, which can lead to an uptrend [6][8].

In at least one corner of the artificial intelligence market, sentiment has turned decidedly negative. Broadcom, CoreWeave and Oracle, three companies intimately tied to the AI infrastructure buildout, all had another rough day on Wall Street on Monday after selling off sharply last week. While the three stocks are all still solidly up for the year — CoreWeave held its market debut in March — the most recent trend suggests that investors are concerned about whether the returns on investment will ever justif ...

The semiconductor company has an eye-popping valuation.Shares of Broadcom (AVGO 5.36%) have been soaring this year as the semiconductor company scored major AI chip wins, but investor sentiment shifted hard last week. Broadcom stock dropped by more than 11% on Friday in reaction to the company's report for the fourth quarter of fiscal 2025.Broadcom's results and guidance were stellar. Revenue surged 28% year over year, adjusted EPS increased 37%, and the company forecasted strong sequential growth in the fi ...

Core Viewpoint - Broadcom's stock experienced an 11.4% decline due to concerns over AI-related revenue pressure on gross margins and a subdued growth outlook for its AI business, raising questions about the sustainability of its growth and margin trajectory [2] Company Overview - Broadcom operates as a $1.7 trillion company with $60 billion in revenue, currently trading at $359.93 [2] - The company has achieved a 12-month revenue growth of 28.0% and maintains an operating margin of 39.0% [2] - Broadcom's liquidity is characterized by a Debt to Equity ratio of 0.05 and a Cash to Assets ratio of 0.06 [2] Valuation Metrics - Broadcom's stock is categorized as Attractive but Volatile, with a P/E multiple of 68.6 and a P/EBIT multiple of 56.5 [3][6] - Historically, the stock has provided a median return of 140% within a year after sharp declines since 2010 [6] Downturn Resilience - In various economic downturns, Broadcom's stock has shown a slightly worse impact compared to the S&P 500 index, both in terms of the extent of decline and speed of recovery [4] - For instance, the stock declined by 36.7% from a high of $67.43 on December 27, 2021, to $42.71 on October 14, 2022, while the S&P 500 experienced a peak-to-trough decline of 25.4% [7] - The stock rebounded to its pre-Crisis peak by May 18, 2023, and reached a high of $412.97 on December 10, 2025, currently trading at $359.93 [7] Historical Performance - During the 2020 Covid Pandemic, Broadcom's stock fell by 48.3% from a high of $32.47 on February 12, 2020, to $16.79 on March 18, 2020, compared to a 33.9% decline for the S&P 500 [8] - The stock regained its pre-Crisis peak by August 4, 2020 [8] - In the 2018 correction, the stock fell 28.9% from a high of $28.46 on November 27, 2017, to $20.25 on July 13, 2018, while the S&P 500 had a peak-to-trough decline of 19.8% [9] - The stock fully recovered its pre-Crisis peak by March 15, 2019 [9]

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Core Insights - Fannie Mae and Freddie Mac have significantly increased their mortgage-backed securities and home loans, aiming to lower lending rates and enhance profitability ahead of a potential secondary offering [1][5]. Company Overview - Fannie Mae and Freddie Mac are large government-sponsored enterprises designed to support the home loan market, facilitating easier access to mortgages [2][3]. - They underwrite over 50% of all mortgages in the U.S., providing financial guarantees on mortgage bonds, which is essential for financing home loans [3]. Financial Activities - In addition to their primary business of providing financial guarantees, they also purchase mortgage bonds and home loans, generating revenue through these investments [4]. - Since June, their investment portfolio has grown by approximately 25%, reaching around $233 billion, within a broader agency mortgage bond market valued at about $9 trillion [5]. Market Expectations - Analysts predict that Fannie Mae and Freddie Mac may add an additional $100 billion to their portfolios, although the exact trajectory remains uncertain due to limited communication from the companies and their regulator [6]. - The strategy of increasing their investment portfolios is seen as a way to improve earnings, which is crucial for any future public offering [7][8].

Broadcom (AVGO) stock retreated sharply following the release of its fourth-quarter fiscal 2025 earnings. Despite delivering results that exceeded market expectations, shares of the semiconductor and software company fell 11.4% on Friday, Dec. 12. This dip reflects profit-taking rather than deterioration in underlying business performance. The pullback comes after an exceptional run in 2025. Broadcom has been one of the major beneficiaries of the surge in artificial intelligence (AI) spending, with stron ...

Group 1: Market Overview - The influence of the "Magnificent 7" on the market is diminishing, accounting for approximately 43% of S&P 500 gains, raising questions about the sustainability of AI spending [1] - Wall Street remains optimistic about the AI trade, with Jeffre maintaining that it is "still in fashion" [1] - Broadcom is highlighted as a top pick with a price target of $350, benefiting from custom chip adoption and existing contracts with hyperscaler customers like Google and Meta [1] Group 2: Company-Specific Insights - Nvidia is still favored by analysts despite recent sell-offs, with a price target of $250, as fears regarding its technology and valuation are viewed as overblown [1][2] - Micron is expected to report strong earnings, with a buy rating from Rosenblad, citing disciplined supply growth and increasing memory demand from AI applications [3] - Broadcom experienced an 11% drop post-earnings, attributed to concerns over potential loss of business from Google, which may consider using MediaTek for its next-generation tensor processing units [4][6]

Morning. Christina Parts Neville joins us with how Wall Street sees the AI trade right now and Sim Modi has a closer look at how some of these widening bond yields for Oracle and some other hyperscalers might be a warning sign for a bubble. Let's begin with KP. Morning KP. >> Good morning Carl. Well, the Magnificent 7's grip on the market is loosening through November. The mega cap tech cohort accounted for roughly 43% of the S&P 500 gains, but that influence is fading. Investors are questioning the sustain ...

After failing to sustain an initial move to the upside, stocks have shown a lack of direction over the course of the trading session on Monday. The major averages have pulled back well off their highs of the session and have recently been bouncing back and forth across the unchanged line.Currently, the major averages are narrowly mixed. While the S&P 500 is up 7.97 points or 0.1 percent at 6,835.38, the Nasdaq is down 10.22 points or less than a tenth of a percent at 23,184.95 and the Dow is down 14.31 poi ...