Broadcom Stock Drops Amid AI Concerns

Broadcom is a company that makes chips for computers.

They recently announced their earnings for the last three months of 2024, which were better than what experts thought they would be.

They also said they expect to make even more money in the next three months.

However, after they announced this, their stock price went down by 8.4%.

This is because investors were not as excited as they hoped about the big orders they have for AI chips and because the company didn't say how much money they think they'll make from AI in 2026.

The company's CEO said they have a lot more orders coming, but they don't know exactly how much money that will be yet.

Even though their stock went down a little after the announcement, it has gone up a lot so far this year.

The S&P 500 and the Nasdaq indices also fell on Friday as artificial intelligence stocks came under pressure after Broadcom’s weak sales forecast fueled concerns about an AI bubble.