Broadcom Earnings Are the Latest to Try to Climb AI Wall of Fear

Wall Street is expecting Broadcom Inc. to report strong earnings after the close on Wednesday, but based on recent trading patterns, even surpassing that high bar may not be enough to reverse the stock’s months-long slump.

The chipmaker’s shares are down about 23% from a December record, well underperforming the S&P 500 Index. The selloff is part of investors’ broader rotation away from the largest technology companies due to fears about the sustainability of the hundreds of billions of dollars committed to developing artificial intelligence capabilities. Broadcom, which is the seventh-most valuable company in the S&P 500 at $1.5 trillion, is a chipmaking partner with Alphabet Inc. and other AI giants, making it a beneficiary of that largesse.