Can Broadcom Stock Recover If Markets Fall?
Broadcom (AVGO) stock is down 16.9% in 21 trading days. The recent slide reflects renewed concerns around China AI hardware risks and AI-driven margin compression, 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 resilience, let’s look at where Broadcom stands today.
- Size: Broadcom is a $1.6 Tril company with $64 Bil in revenue currently trading at $332.48.
- Fundamentals: Last 12 month revenue growth of 23.9% and operating margin of 40.8%.
- Liquidity: Has Debt to Equity ratio of 0.04 and Cash to Assets ratio of 0.09
- Valuation: Broadcom stock is currently trading at a P/E multiple of 68.0 and a P/EBIT multiple of 60.7
- Has returned (median) 120% 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 $233 – 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.
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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 $332.48
| 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 a portfolio approach.
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