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Broadcom (AVGO) stock has plunged nearly 16% following its Q2 earnings. This is a surprising reaction for a company that just reported solid revenue growth, record AI semiconductor sales, and one of the strongest outlooks in the semiconductor industry. Investors were expecting another blockbuster report, and Broadcom delivered, so what went wrong?
The answer may have more to do with Wall Street’s expectations rather than the actual numbers. While investors focused on what Broadcom didn't do, they may have overlooked the most important number from the quarter. Broadcom’s massive backlog could be a compelling reason investors should pay attention to AVGO today.
