Would You Still Hold Broadcom Stock If It Fell Another 30%?
Broadcom (AVGO) stock is down 11.4% in a day. The recent AVGO slide reflects renewed concerns around AI revenue pressuring gross margins and an underwhelming AI growth outlook, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Broadcom stands today.
- Size: Broadcom is a $1.7 Tril company with $60 Bil in revenue currently trading at $359.93.
- Fundamentals: Last 12 month revenue growth of 28.0% and operating margin of 39.0%.
- Liquidity: Has Debt to Equity ratio of 0.05 and Cash to Assets ratio of 0.06
- Valuation: Broadcom stock is currently trading at P/E multiple of 68.6 and P/EBIT multiple of 56.5
- Has returned (median) 140% within a year following sharp dips since 2010. See AVGO Dip Buy Analysis.
These metrics point to a Very Strong operational performance, alongside Very High valuation – making the stock Attractive but Volatile. For details, see Buy or Sell AVGO Stock
That brings us to the key consideration for investors worried about this fall: how resilient is AVGO stock if markets turn south? This is where our downturn resilience framework comes in. Suppose AVGO stock falls another 20-30% to $252 – can investors comfortably hold on? Turns out, the stock saw an impact slightly worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
- Stocks, Bonds, Gold, Crypto: Market Update 12/12/2025
- META Tops Alphabet Stock on Price & Potential
- Better Value & Growth: CRM, ORCL Lead Synopsys Stock
- Why RMD Could Outperform Abbott Laboratories Stock
- Better Value & Growth: FFIV Leads Cisco Systems Stock
- Stronger Bet Than McDonald’s Stock: DRI, YUMC Deliver More
2022 Inflation Shock
- AVGO stock fell 36.7% from a high of $67.43 on 27 December 2021 to $42.71 on 14 October 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 18 May 2023
- Since then, the stock increased to a high of $412.97 on 10 December 2025 , and currently trades at $359.93
| AVGO | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -36.7% | -25.4% |
| Time to Full Recovery | 216 days | 464 days |
2020 Covid Pandemic
- AVGO stock fell 48.3% from a high of $32.47 on 12 February 2020 to $16.79 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 4 August 2020
| AVGO | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -48.3% | -33.9% |
| Time to Full Recovery | 139 days | 148 days |
2018 Correction
- AVGO stock fell 28.9% from a high of $28.46 on 27 November 2017 to $20.25 on 13 July 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 15 March 2019
| AVGO | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -28.9% | -19.8% |
| Time to Full Recovery | 245 days | 120 days |
Feeling jittery about AVGO stock? Consider portfolio approach.
Portfolios Beat Stock Picking
Individual stocks are unpredictable. A smart portfolio keeps you invested, limits downside shocks, and provides upside exposure
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.