Broadcom (NASDAQ:AVGO) shares fell 3.2% in pre-market trading on Monday to $350.48 as semiconductor stocks declined following calls from technology executives for a slower pace of advanced artificial intelligence development.
The decline came as investors assessed the potential implications of a change in the pace of AI development for semiconductor companies with exposure to data-centre and AI infrastructure spending.
Broadcom’s move also occurred during a broader decline in technology shares ahead of the regular US trading session.
Analysts Assess Valuation and Earnings Outlook
Recent analyst commentary on Broadcom has included differing views on the stock’s valuation and outlook.
Some analysts have pointed to Broadcom’s valuation at approximately 30 times forward non-GAAP earnings and the importance of future execution to its valuation. At least one research note has maintained a Sell rating on the shares.
A TipRanks report published on Monday also highlighted differences in analyst views on Broadcom.
The company previously provided fiscal fourth-quarter revenue guidance of $34.8 billion, compared with an analyst consensus estimate of $35.03 billion, while its longer-term earnings outlook exceeded expectations.
VMware Regulatory Scrutiny Remains in Focus
Investors are also monitoring reports that European Union authorities are scrutinising changes to VMware’s licensing practices following Broadcom’s acquisition of the software company.
Separately, Broadcom shares are scheduled to trade ex-dividend on September 21, 2026, for a dividend of $0.65 per share.
Other semiconductor companies, including Nvidia, Marvell, AMD and Qualcomm, were also in focus as the broader chip sector faced selling pressure.
Broader US Equity Market Declines
Broadcom’s pre-market decline came as major US equity indices moved lower. The Nasdaq Composite fell 1.8%, the S&P 500 declined 0.8% and the Dow Jones was down 0.3%.
Broadcom shares therefore traded lower amid a combination of weakness across semiconductor stocks and continued investor assessment of the company’s guidance, valuation and VMware-related regulatory developments.
Broadcom stock price
