Broadcom Shares Drop 6% After VMware Security Vulnerability

Broadcom Inc. saw its share price decline by 6% after a security vulnerability was discovered within its subsidiary, VMware. The sell-off occurred despite the company's strong growth in AI semiconductors, which currently generate half of its total revenue.

Broadcom maintains a long-term growth strategy targeting $100 billion in AI revenue by 2027, backed by multi-year order coverage. Financial projections indicate expected earnings per share growth of 40-50%.

If these targets are met, analysts suggest the forward price-to-earnings ratio could compress to 14.7x by fiscal year 2028.