A disappointing sales growth forecast from Broadcom weighed on Nasdaq 100 futures ahead of the US cash open on 4 June 2026, with Bloomberg reporting the announcement triggered a broad selloff across technology stocks and unwound gains in the artificial-intelligence sector [Brief - 2026-06-04]. The following day, broader market sentiment was further pressured by a drone attack on Oman's Mina al Fahal crude terminal, which pushed Brent crude to $95.37 per barrel and WTI to $93.04 per barrel, adding to an already unsettled macro backdrop for equities [Brief - 2026-06-05].
Broadcom's trailing twelve-month revenue stood at $68.28 billion as of 1 February 2026, representing year-over-year growth of 29.5%. Net income for the same period was $24.97 billion, with a net margin of 36.6% and an operating margin of 40.7%. Gross margin was recorded at 67.8%. EPS grew 31.6% year-over-year. The company held $14.17 billion in cash against total debt of $68.31 billion. The market capitalisation was approximately $1.88 trillion, with a P/E ratio of 77.31 [SEC 10-Q - AVGO - 2026-02-01].
Institutional ownership data showed notable divergence in positioning. Citadel reduced its AVGO position by 20% and Millennium cut its holding by 27% [SEC 13F - Citadel - Q1 2026] [SEC 13F - Millennium - Q1 2026]. Conversely, AQR Capital added 38% to its position, Tiger Global increased its holding by 25%, and Bridgewater expanded its position by 57% [SEC 13F - AQR Capital - Q1 2026] [SEC 13F - Tiger Global - Q1 2026] [SEC 13F - Bridgewater - Q1 2026]. These simultaneous reductions and additions across major institutional filers represent the material position changes that motivated this report.
The prevailing macro environment features a 10-year US Treasury yield of 4.55% and a 2-year yield of 4.17%, producing a normal yield curve spread of 38 basis points [FRED DGS10] [FRED DGS2]. Elevated longer-dated yields sustain higher discount rates applicable to long-duration equity cash flows, a condition that has persisted alongside the geopolitical turbulence in the Persian Gulf region documented across recent briefings.