Broadcom’s AI growth is climbing, but AVGO stock is barely moving in 2026

Broadcom’s stock has been a statistical laggard in 2026, even as the company reports rapid growth in AI-linked chip revenue. Through early July, AVGO was up about 4.15% year to date, a stark contrast to the steep gains recorded by some AI-chip and semiconductor peers, including Advanced Micro Devices and Intel. The divergence has become a talking point as investors weigh whether Broadcom’s operational momentum will translate into a stronger share price in the second half.

The question is especially sensitive because Broadcom sits inside the same AI spending cycle that has been reshaping semiconductor markets. In the latest reporting referenced by 24/7 Wall St, Broadcom’s second fiscal quarter (FY26) revenue reached $22.19 billion, up 48% year over year. Within that total, the company’s AI semiconductor revenue was $10.8 billion, up 143% year over year, highlighting how quickly the AI buildout has become a central part of its business mix.

Broadcom also set a high-growth expectation for the next quarter. Management guided Q3 AI semiconductor revenue to $16 billion, which the article says implies growth of more than 200%. The key point for investors, as presented in the market coverage, is that the fundamental pace has not been reflected in AVGO’s year-to-date price performance, raising concerns that the market may already be discounting the good news or that the stock’s valuation and expectations are working against it.

Even with growth, the stock action has been under pressure. 24/7 Wall St reported that Broadcom shares closed July 2 at $360, down 25% over the prior month. The decline is attributed in the coverage to heightened expectations around the results and a late-June semiconductor selloff that pulled Broadcom down alongside other companies in the group.

The article also pointed to insider trading activity as a factor that has not helped sentiment. It cited a Broadcom director, Henry Samueli, selling a “very large block” of shares on June 24 at prices between $377 and $388, and it noted that CEO Hock Tan and other executives trimmed their positions earlier in April. Broadcom, like many public companies, does not typically frame insider selling as a announcement about business prospects, but the market-watch angle can influence near-term investor psychology.

Valuation arguments have been mixed in the coverage. The piece described Broadcom as trading at a price-to-earnings (P/E) ratio of 59.88 times, while stating that Wall Street’s analyst target price is $524. At the same time, it argued that relative valuation versus AMD and Intel looks more reasonable, using the premise that the other companies’ P/E multiples are even higher. In other words, the stock’s underperformance could be a function of how investors priced the different ways the AI supply chain is benefiting each company.

Still, comparing performance across chip names can be misleading because the markets are often pricing different product cycles and different customer demand profiles. CPUs, AI accelerators, and networking components can all benefit from the same megatrend, but timing varies, and investor expectations can shift quickly. Separately, the article referenced the iShares Semiconductor ETF (SOXX) as also being up strongly year to date, suggesting Broadcom’s lag is not simply a broad sector decline, but an AVGO-specific gap within a generally positive semiconductor tape.

What Broadcom has and has not disclosed remains a constraint on how far any conclusions can go based on this market coverage alone. The article focuses on revenue momentum, guidance, and trading/valuation snapshots, but it does not provide details such as segment-level operating margins, cash flow trends, order backlog, or customer concentration. Until more complete disclosures are reviewed, investors may be left with the same uncertainty embedded in the stock: whether the company’s AI revenue growth will continue at the guided rate and whether that growth will eventually be rewarded by the market’s multiple.

In the near term, the main items to watch are whether Broadcom sustains the AI semiconductor growth trajectory implied by the Q3 guidance, and whether upcoming results and any commentary on demand durability narrow the performance gap versus AMD, Intel, and the broader semiconductor complex. If expectations are being reset after the late-June selloff, AVGO could either re-rate higher with the fundamentals or continue to lag if the market decides the current growth pace is already “in the price.”