Broadcom is the latest victim of sky-high expectations from AI investors

Core Viewpoint - Broadcom's strong earnings report was overshadowed by investor disappointment regarding its outlook and guidance for AI revenue, leading to an 8% drop in stock price despite initial after-hours gains [1][7]. Group 1: Earnings and Revenue - Broadcom reported strong earnings and revenue for the last quarter, exceeding expectations [1][7]. - The company anticipates AI semiconductor revenue to double to $8.2 billion in the following quarter [3]. Group 2: Investor Sentiment - Investors expressed frustration over the lack of full AI revenue guidance for the upcoming year, which contributed to the stock's decline [3][4]. - The $73 billion backlog of AI product orders over the next 18 months was perceived as insufficient by some investors, leading to further disappointment [4]. - There is a sentiment among investors that the CEO was overly reserved in discussing the company's results, which may have affected confidence [5]. Group 3: Market Context - The semiconductor sector has faced increased pressure from investors concerned about the sustainability of the AI trade, impacting stock performance even for companies that report strong earnings [6]. - Broadcom's stock remains up over 56% year-to-date, indicating a strong overall performance despite recent volatility [5].