What's Going On With Broadcom (AVGO) Stock?

Broadcom Inc AVGO shares are trading lower by 4.73% to $179.36 Wednesday afternoon. Shares of chip stocks are trading lower amid overall market weakness, which may be due to tariff volatility.

What To Know: Shares of Broadcom declined Wednesday following the Trump administration's latest export restrictions on Chinese technology firms. As a leading semiconductor supplier, Broadcom generates a significant portion of its revenue from China, particularly in networking chips, wireless connectivity and custom silicon solutions used in AI and data centers.

On Tuesday, the U.S. Commerce Department expanded its blacklist to over 50 Chinese entities, restricting access to high-performance semiconductors.

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While much attention has been on NVIDIA and Advanced Micro Devices, Broadcom could also feel the impact due to its extensive business relationships with Chinese telecom and cloud service providers.

What Else: Further complicating matters, China is introducing stricter energy efficiency requirements for advanced chips, potentially limiting Broadcom's ability to sell into the market. These developments add uncertainty to the company's growth outlook, as China remains a key customer base for its networking and AI-related semiconductor products.

With trade tensions escalating and new tariffs looming, Broadcom investors are weighing the risks of prolonged restrictions on chip exports, which could pressure the company's revenue and supply chain.

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Investors can gain exposure to AVGO by investing in the VanEck Semiconductor ETF SMH.

How To Buy AVGO Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Broadcom’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, AVGO has a 52-week high of $251.87 and a 52-week low of $119.76.