Broadcom shares plunged 4.48% on renewed scrutiny over AI semiconductor exposure.

Broadcom shares plunged 4.477% in pre-market trading on Dec. 18, 2025, signaling a sharp reversal in investor sentiment for the tech giant amid shifting market dynamics.

Analysts attributed the decline to renewed scrutiny over the company’s exposure to AI-driven semiconductor demand. Recent industry reports highlighted intensifying competition in chip design and potential regulatory headwinds, stoking concerns about near-term revenue visibility. The selloff aligns with broader market jitters over valuations in the AI sector, which has seen heightened volatility as investors reassess growth trajectories.

While the company’s long-term strategic position remains robust, traders appeared to prioritize short-term risks, including macroeconomic uncertainty and potential supply chain bottlenecks. The drop reflects a broader trend of profit-taking after a prolonged rally, with some observers noting technical indicators suggesting an overbought condition ahead of key earnings releases.

The selloff reflects a broader trend of profit-taking after a prolonged rally, with some observers noting technical indicators suggesting an overbought condition ahead of key earnings releases. This sharp reversal has raised questions about the sustainability of Broadcom’s recent performance and how external factors might influence its valuation in the near future.

As the stock continues to face headwinds, investors are advised to monitor not only earnings developments but also any new regulatory or geopolitical signals that could further impact the semiconductor landscape.