Broadcom Stock Drops as Chip Stocks Slide. Is the AI Trade Ending?

Broadcom Inc. (AVGO) stock has been on a rollercoaster ride in recent months, with the chipmaker's shares surging to all-time highs earlier this year before experiencing a significant pullback. As of December 29, 2024, Broadcom's stock price stands at $241.75, down from its 52-week high of $251.88 but still up around 107% year-to-date. The recent decline in Broadcom's stock price, along with other chip stocks, has investors wondering if the AI trade is coming to an end. Let's dive into the factors driving Broadcom's stock performance and assess the outlook for the company and the broader chip industry.