AVGO: The Reddit Case for Buying the Dip After a 15% Earnings Week

AVGO dropped 15% this week after an earnings 'miss' — but Reddit analysts say the business beat on every metric.
Orders are visible to 2028, networking demand is 'insatiable,' and AI semiconductor revenue grew 143% YoY.
The selloff was driven by a single disappointment: the $100B FY2027 AI revenue guide wasn't raised.

Broadcom (

$AVGO) dropped 15% this week on an earnings 'miss' that sent the semiconductor sector into a tailspin.

$NVDA fell 6.2%,

$MU dropped 13.25%, and

$MRVL fell 16.74% in the worst chip session since March 2020. But on r/investing, a detailed post that went through the AVGO transcript line by line argued the market reaction and the business reality are 'completely disconnected.'

What the Transcript Actually Says

The r/investing post, which earned 74 upvotes and 47 comments, highlighted that Hock Tan confirmed orders are visible to 2028 — not 2026 or 2027. A 1-gigawatt XPU plus networking order has already been received. OpenAI goes into production on custom silicon late 2026. META's custom AI program ramps H2 2027. Management said on the call: 'demand for networking is simply insatiable.'

The business beat on every metric: revenue up 48% YoY, AI semiconductor revenue up 143% YoY, operating margin hit 67%. The stock dropped because the $100B FY2027 AI revenue guide wasn't raised. That's it.

Reddit Sentiment: Bullish on the Dip

On r/ValueInvesting, a user with 12 shares at an average price of $330 (their #1 position at roughly $43K) said they will be doubling their position as the stock dips. They acknowledged that

$TSM has a stronger thesis, but called Broadcom's custom silicon strategy for specific customer workloads the 'preferred investment' despite the higher valuation.

On r/wallstreetbets, the tone was more mixed. One user who lost money on AVGO calls before earnings said they 'got greedy when AVGO was on its way up' and expected a blowout like

$DELL — but instead got 'fucked in the ass' by the trade.

The Broader Macro Picture

On r/options, a post noted that semiconductors and crypto 'told the same story from two angles' this week. The SOX fell 10.3% on Friday, the Nasdaq dropped 4.18%, and the sector lost $1.3 trillion in two sessions after Broadcom reiterated rather than raised AI chip guidance. Then NFP came in at 172,000 vs 85,000 expected, sending yields sharply higher. The post concluded that the AI chip upgrade cycle may be decelerating, yields are rising, and the Fed is going nowhere — with the FOMC meeting June 16-17 and a 98.7% hold probability.

The same-day news context from

$FOOL and

$INVEST reinforced the theme: one article argued Broadcom's custom silicon strategy is the stronger competitive advantage over

$AMD in the AI chip market, while another recommended selling covered calls as a hedge in a market 'priced for near perfection.'

AVGO

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