Why Is Broadcom Stock Sliding Ahead of Earnings?

Broadcom Inc (NASDAQ: AVGO ) stock fell more than 1.50% on Friday as new semiconductor tariff uncertainty pressured chip stocks and added another risk to the AI infrastructure supply chain. Technology dropped 1.31%, making it the worst-performing sector, while the S&P 500 slipped just 0.14%. Six sectors traded lower, with the advance-decline ratio at 0.8.

The Trump administration is reportedly considering expanding semiconductor-related tariffs to a broader range of technology products, potentially including laptops, gaming consoles and data-center servers. The proposal has raised concerns that higher costs and tighter supply could affect the ongoing AI infrastructure buildout.