Broadcom Fell 24%. The AI Revenue Didn't

(AVGO) shed ~24% from its 52-week high to $314.56, but AI chip revenue hit $8.4B in Q1 FY26 (+77% YoY) with Q2 guided to $10.7B. The stock repriced. The business didn't.

Estimate revision momentum is exceptional: 35 analysts revised EPS upward in the last 30 days, zero revised downward. Next year EPS estimates moved up 27.4% in just 90 days.

The dividend angle gets overlooked. (AVGO) posts a 0.8% yield, but the 5-year dividend CAGR is 12.5%, with a Chowder Rule score of 13.3%. Cash flow predictability is in the 100th percentile.

Quality Score of 95/100, Growth Score of 100/100, Altman Z at 11.35, FCF margin above 42%. This is an elite-quality GARP compounder, not a speculative AI trade.

The correction came fast. Broadcom (AVGO) shed roughly 24% from its 52-week high of $414.61, landing at $314.56 as of early April 2026. The technical picture is not pretty: below the 50-day and 200-day moving averages, RSI hovering near 47, and a formal downtrend label from most systematic screens. For investors who run a pure value process, none of that is surprising. The stock was expensive when it peaked, and it's still not statistically cheap. A strict discount-to-fair-value framework can stay cautious here and defend that call without breaking a sweat.

Broadcom Fell 24%. The AI Revenue Didn't

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