Broadcom Inc. (AVGO) experienced its steepest three-day stock decline since 2020, shedding over 14% of its market value, while Meta Platforms Inc. (META) surpassed it in market capitalization, reclaiming its position as the more valuable tech stock. The reversal underscores evolving investor sentiment and potential recalibration of valuations in the semiconductor and tech sectors.
- Broadcom (AVGO) lost 14.1% of its value over three days, its worst drop since 2020
- Meta (META) gained 9.7% during the same period, surpassing Broadcom in market cap
- Meta’s market cap reached $1.87 trillion, overtaking Broadcom’s $1.84 trillion
- The shift reflects renewed investor confidence in Meta’s AI-driven ad growth and margins
- Broadcom faces scrutiny over high valuation and sustainability of AI chip demand
- The reversal impacts index weighting and tech sector ETF performance
Broadcom’s stock tumbled from a peak of $1,320.40 on December 12, 2025, to close at $1,133.90 on December 15, marking a 14.1% decline over three trading sessions. This represents the most severe short-term drop for AVGO since the pandemic-era volatility in early 2020. The slide followed a series of profit warnings from major tech firms and renewed concerns about AI-driven hardware demand sustainability, particularly for data center chips. In contrast, Meta’s shares rallied 9.7% over the same period, closing at $876.30 on December 15, driven by stronger-than-expected ad revenue growth and investor optimism over its AI integration in advertising and social platforms. Meta’s market cap climbed to $1.87 trillion, surpassing Broadcom’s $1.84 trillion, reversing a trend from early 2025 when AVGO had briefly overtaken META in valuation. The shift reflects a broader recalibration in investor positioning. Broadcom, once the top-performing tech stock in 2024 due to its dominant role in AI infrastructure and acquisitions like VMware, now faces scrutiny over high valuation multiples and potential revenue deceleration in the second half of 2025. Meanwhile, Meta’s improved margin performance and strategic AI deployment have bolstered confidence. The change impacts not only investors but also market indices and sector benchmarks. As the largest tech stocks by market cap, the reversal between AVGO and META influences weighting in the Nasdaq-100 and S&P 500, potentially altering directional momentum in tech-focused ETFs and algorithmic trading strategies.