Broadcom's AI Chip Triumphs Can't Mask a $250 Million Insider Exodus and a Steep Slide
Published on 07/03/2026 at 03:54 | Redaktion boerse-global.de
Broadcom's stock has been caught in a tug-of-war between a blistering AI narrative and a wave of insider selling that has wiped nearly a quarter from its value in a month. The shares closed Thursday at €314.30, down 24.11% over the past 30 sessions and roughly 27% below the record high of €429.60 set in early June. Yet the company's core thesis—that hyperscalers will pay handsomely for custom silicon—has rarely looked stronger.
The paradox is most visible in the boardroom. Two major insider disposals in quick succession have rattled retail investors. Henry Samueli, co-founder and chairman, sold shares worth $250 million on June 24 through a pre-arranged 10b5-1 plan dating back to December 2025. Chief legal officer Mark Brazeal also cashed out, unloading 25,000 shares at an average of $387 on June 25 for roughly $9.68 million. A separate filing showed CEO Hock Tan had sold 70,000 shares on January 6, 2026, netting about $24.3 million—a transaction only recently corrected and refiled. While the Samueli and Tan sales are legally insulated from inside knowledge, their sheer size has fed anxiety.
A Chip for OpenAI's "Jalapeño" Offers a Counterpoint
Just as those filings landed, Broadcom and OpenAI jointly unveiled "Jalapeño", a custom inference chip designed to cut the cost of running ChatGPT and other OpenAI services. The chip, announced June 24, is Broadcom's latest trophy in a strategy that already includes Meta's MTIA processor and multiple generations of Google's tensor processing units. The partnership underscores Broadcom's grip on the custom-AI market, even as new rivals emerge.
That grip, however, is being tested. The Information reported Friday that Anthropic, the startup behind Claude, is developing its own in-house AI chip. Though the effort is in an early stage—performance requirements are still being defined, and design and fabrication remain distant—investors took it as a reminder that every hyperscaler and AI lab is racing to reduce its hardware dependency. Broadcom's unique position as the go-to partner for custom silicon is no longer uncontested.
Should investors sell immediately? Or is it worth buying Broadcom?
T-Mobile's VMware Exit Exposes a Second Front
On the software side, Broadcom faces a different kind of pressure. T-Mobile US is reportedly planning to migrate roughly 1,000 applications off the VMware platform, affecting more than 300,000 compute cores in its network infrastructure. The move is widely attributed to customer dissatisfaction with new subscription licensing and rising support costs introduced after Broadcom acquired VMware. Losing a marquee telecom client would be a blow to the company's strategy of extracting higher revenue from a smaller pool of customers.
Technical Picture Flashes Mixed Signals
The stock's decline has pushed the 14-day relative strength index to 39.4, approaching oversold territory. Annualized 30-day volatility remains elevated at 62.22%. The current price sits just over 1% above the 200-day moving average of €311.14, while trailing the 50-day average of €352.69 by nearly 11%. That gap suggests the selloff has been swift and broad, but not yet a full breakdown of the long-term trend.
Indeed, despite the monthly carnage, Broadcom shares are still up 37.46% over the past twelve months. The company's own forecasts call for AI semiconductor revenue to surge more than 200% in the third quarter of fiscal 2026 to $16 billion, with the entire AI business expected to surpass $100 billion by fiscal 2027. Analysts interpret the current rout as a valuation correction, not a demand signal.
Broadcom at a turning point? This analysis reveals what investors need to know now.
Whether the insider sales represent simple portfolio diversification or a more cautious view from those closest to the business remains an open question. For now, Broadcom's AI engine is humming louder than ever—but the market is listening to a different tune.
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