Broadcom Inc. (AVGO) Down 19% Since Q4 2025 Results, Here’s Why

​Broadcom Inc. (NASDAQ:AVGO) is 1 of the Best Stocks to Buy and Hold for 2026. The stock terms of Broadcom Inc. (NASDAQ:AVGO) has fallen much than 19% since the institution released its fiscal Q4 2025 results connected December 11. The falling capitalist sentiment comes contempt the net beat. However, Wall Street remains bullish connected the banal with analysts’ 12 period terms people reflecting much than 40% upside.

​During the fiscal Q4 2025, Broadcom Inc. (NASDAQ:AVGO) grew its gross by 28.18% year-over-year to $18.02 billion, surpassing estimates by $555.89 million. The EPS of $1.95 besides topped statement by $0.08. Management attributed the beardown quarterly show to AI maturation from XPUs and networking. Notably, the institution forecasts that its AI concern volition present much than 100% year-over-year maturation to scope $8.2 cardinal successful Q1 2026.

​A caller study by Forbes, published connected December 18, noted that the falling capitalist sentiment contempt the net beat, chiefly stems from the disappointing gross borderline outlook for Q1 2026. Management expects the margins to compress by astir 100 ground points, driven by a displacement towards lower-margin AI hardware.

​However, Wall Street maintains its bullish outlook connected Broadcom Inc. (NASDAQ:AVGO). Recently, connected December 17, Joseph Moore from Morgan Stanley reiterated a Buy standing connected the banal with a $462 terms target. Earlier connected December 15, Timothy Arcuri from UBS besides reiterated a Buy standing connected the banal and besides raised the terms people from $472 to $475.

​Arcuri noted the caller stock terms pull-back arsenic an overreaction based connected his treatment with the company’s management. He added that the driblet besides indicates overly consensus-long positioning, thereby reflecting wide bullish consensus. Arcuri highlighted that commentary connected AI semiconductor gross suggests precocious expectations for the adjacent year, and helium raised the terms people to $475.

​Broadcom Inc. (NASDAQ:AVGO) designs, develops, and supplies assorted semiconductor devices and infrastructure bundle solutions worldwide. The institution operates successful 2 segments: Semiconductor Solutions and Infrastructure Software.

While we admit the imaginable of AVGO arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published astatine Insider Monkey.