Broadcom loses a Boeing's worth of market cap during five-session slide

By Emily Bary

The chip company's stock has seen its worst five-day performance in more than two years

Broadcom Inc.'s furious stock rally has cooled in recent days, such that the company shed more than $100 billion in market capitalization across its current five-session losing streak.

The chip maker peaked on June 17 with a $851 billion market capitalization that was good for eighth place in the S&P 500 SPX at that point. Broadcom shares (AVGO) have fallen in each session since then, translating to a $115 billion erasure of market cap over that span, according to Dow Jones Market Data.

That five-day loss of market cap is more than Boeing Co.'s (BA) entire valuation, which is about $107 billion. It's nearly as much as Intel Corp.'s market value of $131 billion.

Read: Here's why AMD's stock was just dubbed a top pick

Broadcom's stock has lost 13.6% across the past five trading sessions to record its worst five-day decline since May 24, 2022, when it fell 13.8%, according to Dow Jones Market Data. The company's shares had been on a seven-session winning streak prior to that, and had been up 64% on the year before the latest string of declines.

See also: Why Broadcom's stock just got its most upbeat endorsement yet

Broadcom shares fell 0.7% in Tuesday action, on a day when the PHLX Semiconductor Index SOX was up 1.8%.

Still, analysts remain upbeat about the stock, as 36 of 42 tracked by FactSet have bullish ratings, and the average price target is 19% above current levels.

"As far as alternatives [to Nvidia] in AI, we continue to favor [Broadcom]," Morgan Stanley analysts wrote recently.

See also: Nvidia is one of the 'three horsemen of AI.' Here are the others.

-Emily Bary

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06-25-24 1634ET

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