Broadcom shares are down 31% from their all-time high and 4% since the start of 2026, hit by a semiconductor sell-off after Intel's disappointing fourth-quarter guidance. Yet the author notes fiscal third-quarter AI semiconductor revenue of $16.7 billion beat the $16 billion target, up 221% year over year, and total revenue reached $29.6 billion, up 86%. Management guided to $21.7 billion in AI semiconductor revenue for the fourth quarter, up 236%. Risks remain, including competition from Google's expanded Marvell partnership, and the stock trades at 28.3 times forward earnings. The author still considers the valuation justified by the results and finds the shares attractive below their peak.
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