Broadcom (AVGO) Stock Trades Down, Here Is Why

What Happened?

Shares of fabless chip and software maker Broadcom (NASDAQ:AVGO) fell 4% in the afternoon session after uncertainty increased over when key companies can resume large-scale sales of high-end artificial-intelligence chips to China. 

The U.S. government reportedly extended its review of export license applications for AI hardware, such as Nvidia's H200 chips, on national security grounds. This delay created uncertainty for chipmakers and reportedly led some Chinese customers to postpone orders until clearer guidance was issued. While there were earlier signals that some shipments could restart, the extended review process stalled progress, weighing on the stock of major exporters who saw China as a significant market. The situation highlighted the ongoing geopolitical tensions impacting the semiconductor industry's global supply chain.

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What Is The Market Telling Us

Broadcom’s shares are very volatile and have had 23 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 15 days ago when the stock dropped 4.9% on the news that rising geopolitical tensions between the US and Europe over control of Greenland sparked a broad, risk-off mood in asset markets. The sell-off was fueled by President Trump's push for the U.S. to acquire Greenland, reviving fears of trade confrontations and new tariffs against European allies. The tech-heavy Nasdaq index saw significant declines, with the "Magnificent Seven" technology stocks, Nvidia, Apple, Alphabet, Amazon, Meta, Microsoft, and Tesla, all sliding to start the week. This widespread downturn among major tech players weighed heavily on the overall market as investors reacted to the escalating political rhetoric.

Broadcom is down 11.4% since the beginning of the year, and at $308.13 per share, it is trading 25.4% below its 52-week high of $412.97 from December 2025. Investors who bought $1,000 worth of Broadcom’s shares 5 years ago would now be looking at an investment worth $6,547.

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