Broadcom Stock Crash Signals AI Overvaluation Fears

Broadcom shares crashed up to 14% after Q2 results, despite revenue of $22.2 billion beating estimates. CEO Hock Tan reiterated full-year AI chip revenue guidance of "in excess of $100 billion" without raising it, disappointing investors. The selloff dragged other AI stocks down, reflecting fears that AI stocks are overpriced. Broadcom trades at 37 times this year's expected earnings.