Wed Jul 23 20:20:00 UTC 2025: ## Broadcom Stock Dips on Concerns Over Slow Stargate AI Project Rollout

**San Jose, CA -** Shares of Broadcom (AVGO) fell 3.3% on Tuesday as investors reacted to news that the much-anticipated Stargate Project, a massive $500 billion AI infrastructure initiative, is facing delays. The Wall Street Journal reported that the project, backed by Softbank, OpenAI, Oracle, and MGX, is not scaling as quickly as initially projected, leading to a narrowed scope of near-term expansion plans.

Stargate is intended to build data centers and other AI infrastructure over the next four years. Broadcom, a key supplier of networking and connectivity chips essential for AI processors like those from Nvidia, has been a major beneficiary of the AI boom.

The potential slowdown in Stargate’s rollout raises concerns about slower-than-expected growth for Broadcom, despite its strong position in connectivity hardware and software. While the long-term outlook for Broadcom remains promising, Stargate represents a significant potential revenue stream. Analysts suggest that some delays may not significantly impact Broadcom if the partners remain committed to the project’s overall vision. However, the situation warrants close monitoring.

The broader market experienced volatility on Tuesday, with tech-sector valuation concerns initially dragging down major indexes. However, news of a trade agreement between the U.S. and the Philippines sparked an afternoon recovery.

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