Core Viewpoint - Broadcom's stock is experiencing a decline due to rising pessimism regarding AI benefits and inflation concerns impacting investor sentiment [1][2][5]. Group 1: AI Impact - A recent MIT report indicates that 95% of businesses are not seeing returns on investments in generative AI, leading to sell-offs in Broadcom's stock [4]. - Broadcom's valuation had previously benefited from AI-related demand for its connectivity chips and services, with the stock still up approximately 72% over the past year despite recent declines [4]. Group 2: Inflation Concerns - Recent earnings reports from Home Depot and Target suggest that inflation may be increasing, with Home Depot raising prices due to tariff-related costs and Target facing similar pressures [6]. - New data indicating higher-than-expected inflation for producers and wholesalers in July raises concerns that the Federal Reserve may adopt a more cautious approach to interest rate cuts, which could negatively affect Broadcom and other growth stocks [7].