Broadcom stock 2026 performance, Digi Mart USA News: Broadcom (NASDAQ:AVGO) stock has had a rough 2026. At roughly $300 as the source article was written, the chip designer’s shares traded about 13% below their 2025 close of $346.10.
A losing year is rare for this stock. Since its August 2009 listing as Avago Technologies, the stock has ended just two calendar years lower.
Shares dipped around 1% in 2018 and dropped 16% in 2022, but both times a strong year followed, with the stock gaining 24% in 2019 and almost doubling in 2023.
The S&P 500 dropped around 6% in 2018 and 19% in 2022, so Broadcom beat the index both times. This year, the index is up about 9%.
If 2026 ended at current levels, it would be the first calendar year since Broadcom’s debut in which the stock lagged the S&P 500 by more than 5 percentage points.
Neither earlier drop was about the business. Broadcom’s revenue climbed 18% in fiscal 2018 to almost $21 billion, and free cash flow grew even faster, up 50%.
Fiscal 2022 revenue rose 21% to a record $33.2 billion.
The rebound years were in some ways the slower ones. In June 2019, Broadcom cut its fiscal 2019 revenue forecast to $22.5 billion from $24.5 billion, with CEO Hock Tan pointing to “a broad-based slowdown in the demand environment.” Revenue finished the year up 8%, and the stock’s 24% rise in 2019 lagged the S&P 500’s 29%.
Fiscal 2023 revenue also rose just 8%, but Tan said that growth came from “investments in accelerators and network connectivity for AI by hyperscalers,” and Broadcom forecast around $50 billion in fiscal 2024 revenue with VMware included, up 40%.
The starting price probably helped in both cases. Shares closed 2018 at around 12 times earnings and 2022 at about 15 times earnings, based on non-GAAP (adjusted) earnings per share for the fiscal year just ended.
Broadcom’s business is growing faster today than in any of those years. Revenue jumped 86% year over year to $29.6 billion in the fiscal third quarter of 2026 (ending Aug. 2, 2026), led by artificial intelligence (AI) semiconductor revenue of $16.7 billion, up 221%.
Net income climbed 216%, and free cash flow has grown for three straight quarters, from $7.5 billion in fiscal Q4 2025 to $13.7 billion in fiscal Q3.
Even so, shares have shed more than a third of their value since closing at a record $481.57 on June 2. The stock also does not start at a cheap price.
Shares trade at around 30 times adjusted earnings for the past four reported quarters, at least twice either earlier starting point. On fiscal 2027’s expected earnings, the price-to-earnings ratio is about 16, which the source article says arguably looks fair for a business growing so fast.
Broadcom has said it plans to release its fiscal fourth-quarter results on Wednesday, Dec. 9. Management guided for fiscal fourth-quarter revenue of about $34.8 billion, up 93% year over year, with $21.7 billion in AI semiconductor revenue.
The bigger test is fiscal 2027, when Broadcom expects AI semiconductor revenue to double to around $115 billion. CFO Amie Thuener said on the Sept. 2 earnings call: “This AI revenue guidance is being provided to you to give you the trajectory of our growth, and we do not intend to update it on a quarterly basis.”
The source article notes that December’s guidance for the fiscal first quarter of 2027 may be the closest check investors get. Reaching $115 billion requires an average of almost $29 billion in AI revenue a quarter, well above the $21.7 billion guided for the fiscal fourth quarter.
The December report has also usually brought the annual dividend increase, which was 10% last year.
The author notes that Broadcom had climbed in 13 straight fourth quarters when shares were around $350 in late September, and that a gain of about 17% from the level cited in the article would continue that streak, while about 15% would keep 2026 out of the loss column. The article concludes that Broadcom’s business looks far stronger than in 2018 or 2022, but that this year’s drop is company-specific rather than market-wide and that a soft first-quarter outlook could push the stock lower before year-end.
