US Stock Market Move | Stock prices continued to fall, with Broadcom Inc. (AVGO.US) dropping over 4%, and its high growth performance being questioned.

After a sharp drop of over 11% in stock price last Friday, Broadcom Inc. (AVGO.US) dropped over 4% again on Monday, closing at $344.96. The financial report of Broadcom Inc. indicated a significant deviation between the year-on-year growth rates of AI R&D investment (27%) and the number of patents (5%), exposing its growth relying more on expanding order size rather than improving technological barriers. Pressure from customers on pricing led to a narrowing gross margin, a price war caused by excess production capacity of inference chips, and financial burden from high debt have resonated to form three major risks, with the revenue data disclosed in the financial report becoming the trigger point of risk exposure. The valuation logic of capital in the AI chip industry is transitioning from a "growth-only" perspective to a comprehensive consideration of profit stability and risk controllability. Analysis believes that from the perspective of financial data and business structure, the risk exposure of Broadcom Inc. has a clear direction. The 51% gross margin of the AI business, 75% revenue concentration from the top three customers, and a debt scale of $69.8 billion together form the "fragility" of growth - over-reliance on customized production models leads to insufficient profit elasticity, customer dependence exacerbates revenue fluctuation risks, and high debt amplifies the impact of profit decline in a high-interest rate environment. This combination of "high growth + high risk" stands in stark contrast to the current preference of capital for "certainty."