Broadcom Inc. shares face persistent selling pressure despite expectations of strong earnings, with investors questioning the sustainability of AI-driven growth. The semiconductor giant’s stock has plummeted 24% from its December peak, underperforming the S&P 500 amid broader tech sector rotation.

While analysts forecast a 27% jump in adjusted earnings per share to $2.03 and revenue growth to $19.3 billion, the market remains skeptical. AI-related sales are projected to nearly double to $8.2 billion, but concerns linger over profit margins, which are expected to dip to 77% from 79% year-ago levels. Nvidia’s recent earnings backlash—a 9.4% stock drop post-earnings beat—sets a precedent for Broadcom’s potential reception.