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.
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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