Broadcom Inc. (NASDAQ:AVGO) stock fell on Tuesday as investors continued to move away from growth-oriented technology stocks amid a broader market sell-off.

Last week, the stock came under pressure after Broadcom reported strong fiscal second-quarter results but maintained, rather than increased, its forecast for more than $100 billion in AI semiconductor revenue by fiscal 2027. Management’s third-quarter AI revenue outlook was also largely in line with Wall Street’s already elevated expectations.

The unchanged outlook triggered profit-taking across AI-related stocks, as investors who had bid shares to premium valuations looked for stronger signs of accelerating growth.

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Defensive Rotation Weighs on Semiconductors

Tuesday’s decline appeared to be driven more by market sentiment. The Nasdaq Composite dropped 2.06%, while the S&P 500 lost 0.84%. Although most sectors traded higher, investors favored defensive areas such as real estate and healthcare over technology.

Market breadth remained positive, with nine of 11 sectors advancing. However, leadership came from defensive groups rather than high-growth technology stocks. The Real Estate Select Sector SPDR Fund gained 2.41%, while the Health Care Select Sector ...