Broadcom Shares Fall 3.30% to $345.32 as Chip Stocks Sell Off

Broadcom Inc. (NASDAQ: AVGO ) stock is falling on Wednesday amid a broader sell-off in semiconductor stocks. 02%. 4% on the session.

• Broadcom stock is taking a hit today. Why are AVGO shares down? The decline follows comments on Monday from CEO Hock Tan about artificial intelligence (AI) investors, Tan spoke at an event in Singapore. "A lot of investors have no clue what they are investing in," he said.

" Read Also: Nasdaq 100 Drops 1% on Hot CPI, SOXX Falls 7th Day: Stock Market Today Questions on OpenAI’s Profitability Tan said OpenA I’s roughly $50 billion annualized revenue in September showed strong demand. Annualized revenue scales recent results to a full year. He said OpenAI’s training costs gave little indication of long-term profitability. OpenAI is among Broadcom’s customers.

7 billion in fiscal third-quarter AI semiconductor revenue, up 221% year over year. 7 billion in the fourth quarter. Tan forecasts annual AI chip revenue will grow from about $58 billion this fiscal year to $230 billion in fiscal 2028. Part of that growth depends on OpenAI.

5% below its 200-day SMA, which keeps the intermediate-term posture tilted bearish. The 20-day SMA sitting below the 50-day SMA adds to that "rallies are being sold" feel, even though the longer-term 50-day SMA remains above the 200-day SMA (the Golden Cross that formed in April). Momentum is improving at the margin: MACD is above its signal line and the histogram is positive, which suggests downside pressure is easing versus the prior downswing. In plain English, when MACD is above its signal line, it often means sellers are losing control even if price hasn’t fully reclaimed key moving averages yet.

32 at the time of publication on Wednesday, according to Pro data. Read Also: Morgan Stanley Cashes In on IPO Boom, Rakes in $232 Billion in New Assets Photo Courtesy: Broadcom