Broadcom Stock Plunges 1.61% on $5.45 Billion Volume Ranking 12th Amid AI Infrastructure Push

On August 5, 2025, Broadcom (NASDAQ:AVGO) fell 1.61% with a trading volume of $5.45 billion, ranking 12th in the market. The stock faces near-term pressure despite recent strategic advancements in AI infrastructure.

Broadcom announced the commercial launch of its Jericho4 ethernet fabric router, engineered to connect over one million XPUs across distributed data centers. The 3nm chip eliminates retimers and optimizes power efficiency, addressing hyperscalers’ growing demand for secure, high-bandwidth networking. This complements its Tomahawk 6 and Ultra portfolios, positioning the company at the forefront of AI-driven infrastructure scaling.

Analysts highlight Broadcom’s strategic advantages. Goldman Sachs initiated a Buy rating with a $315 price target, citing its M&A-driven growth and AI tailwinds. Morgan Stanley reiterated an Overweight rating, raising its target to $338, while Citi Research cited continued AI spending as a key growth driver. The company is set to release Q3 FY2025 results on September 4, with estimates projecting $15.82 billion in revenue and $1.66 EPS, reflecting 21% year-over-year growth.

A backtested strategy of holding high-volume stocks for one day returned 166.71% from 2022 to present, significantly outperforming the 29.18% benchmark. This underscores the impact of liquidity concentration in volatile markets, where institutional activity in high-volume names like Broadcom can amplify short-term price movements.