Broadcom: The Market Overreacted To The AI Guidance Optics

Broadcom stock fell nearly 20% after Q2 earnings despite robust results: Semiconductor Solutions revenue up 79% YoY and AI semis revenue up 143% YoY. The selloff was driven by guidance failing to exceed lofty expectations, though management reiterated the >$100B FY2027 AI revenue target. Strong order book with $30B new orders and 2.8x book-to-bill supports confidence.