Broadcom Inc. (AVGO) ended Friday's session at $328.75, down $15.58, or 4.52%, as investors continued to trim their artificial intelligence exposure amid a broad semiconductor sell-off.

Roughly 30 million shares changed hands during the session, above the stock's 30-session average of 24 million, indicating heavier-than-usual trading activity.

The decline capped a difficult week for chip stocks. The Nasdaq logged its steepest weekly loss since June, and Broadcom — one of the industry's largest companies — was caught up in the selling. Market participants have been weighing how AI infrastructure buildouts will be financed, how long interest rates will remain elevated, and whether the sector's enormous spending plans will deliver returns. Those sector-wide questions now shape how investors read results from any individual chipmaker, Broadcom included.

Those concerns grew after Broadcom CEO Hock Tan cautioned about speculative excitement surrounding AI investments during remarks at a conference on October 13.

The Numbers Behind the Stock

Despite the share-price pressure, the company's underlying business remains strong. Fiscal third-quarter revenue reached $29.6 billion, an 86% jump from a year earlier.

GAAP diluted earnings came in at $2.68 per share, while adjusted earnings were $3.32 per share. Free cash flow totaled $13.7 billion, equivalent to 46% of quarterly revenue — cash generated from Broadcom's own operations, a figure that speaks directly to the financing question hanging over the sector's AI buildout.

Management expects fourth-quarter revenue of approximately $34.8 billion, which would represent annual growth of roughly 93%. That guidance now serves as the benchmark investors will measure the company against when it next reports.

The custom AI chip business sits at the center of the story. Broadcom teamed up with OpenAI on the Jalapeño inference chip, shown off in June 2026. The chip is built to handle AI queries efficiently and could give Broadcom a bigger foothold in a market that Nvidia currently leads. Custom silicon has become a competitive front in AI hardware, with rivals such as Marvell pursuing their own designs, which is why each partnership in this segment carries weight for Broadcom's growth outlook.

What Analysts and Technicals Say

Ben Reitzes of Melius Research is sticking with his $610 price target on the stock, which implies about 86% upside from Friday's close. He expects Google's custom AI chip spending to keep growing through 203 and also points to openings with OpenAI and Anthropic.

Harlan Sur of JPMorgan is similarly positive on Broadcom's place in the market. Even so, competition from Marvell and other custom chip makers could eat into the company's share.

Valuation remains a sore spot. The stock trades near 42 times trailing earnings, which leaves little room for a stumble.

On the charts, the October 16 low of $328.58 is the first level buyers will watch. A drop below it could open the way toward $300, while a move above $346 would help the short-term picture. With Friday's close of $328.75 sitting just above that low, the level leaves the stock little cushion heading into the next session.

Broadcom's next big marker is its fourth-quarter revenue forecast of about $34.8 billion. The upcoming report will show whether growth at that pace is materializing — and, with it, how the market's questions about AI spending and returns continue to be answered.