Broadcom Shares Drop Amid Delays in AI Infrastructure Project

NEW YORK, NY — Broadcom Inc.’s stock fell 3.3% on Tuesday, July 22, 2025, closing at $278.59. This decline came as the tech sector struggles with valuation concerns amid a broader market volatility influenced by a trade agreement between the U.S. and the Philippines.

The Wall Street Journal reported that the Stargate Project, which aims to create AI infrastructure, is not progressing as quickly as planned. Funded by partners including Softbank, OpenAI, Oracle, and MGX, the project is backed by a $500 billion investment and seeks to build extensive data centers within the next four years. However, scaling efforts have been narrowed, raising concerns about a slower launch.

Broadcom, which provides essential networking and connectivity chips for advanced AI processors from companies like Nvidia, has thrived from the AI boom. Despite Tuesday’s setback, its stock experienced a 67.5% surge over the past three months and an impressive 786% rise over the last five years.

Experts indicate that if the Stargate Project suffers further delays, it could impact Broadcom’s growth trajectory. Nonetheless, the company maintains robust positions in both hardware and software services, and its long-term outlook remains strong. As long as the technical partners adhere to original expansion plans, analysts predict the delays won’t significantly harm Broadcom.

Investors remain on alert as the situation develops, considering that disruptions in the Stargate Project could limit potential sales for Broadcom. Further reports on the project’s progress will be crucial for stakeholders.