AVGO stock plummets 4.48% as broader market volatility and sector rotation drive selloff

On December 18, 2025, shares of Broadcom Inc. fell 4.477% in pre-market trading, marking a sharp reversal in investor sentiment ahead of the regular session. The decline comes amid broader market volatility and shifting risk appetite, though no immediate earnings or corporate developments have been disclosed to directly explain the move.

Analysts suggest the selloff could reflect broader sector rotation as investors rebalance portfolios ahead of year-end. Broadcom, a key player in semiconductor and software licensing, has faced periodic valuation pressures due to its high multiples. Recent macroeconomic uncertainties, including mixed inflation data and central bank policy ambiguity, may have amplified profit-taking in growth stocks.

With the stock now trading at a discount to its 52-week high, market participants are closely monitoring guidance from the firm’s upcoming quarterly report. However, in the absence of new catalysts or earnings surprises, the pre-market decline appears to stem from general market dynamics rather than company-specific factors.