AVGO is in bear market territory with high valuations but reported strong growth; a rebound is possible if the market recovers.

We were already in bear market territory for AVGO stock before this report. The concern is that valuations for the stock are still high, but let's look at some of the numbers. Annual revenue growth of 86% to just over $29.5 billion.

The semiconductor solutions sector grew by 127% year-on-year. Infrastructure software rose 29% year-on-year to reach 8.75 billion. Then I looked at the semiconductor revenues allocated to artificial intelligence.

This is a major area of ​​growth for them. It jumped 221% year-on-year to reach $16.7 billion for this quarter. They also raised their guidelines for the future.

So, with the high valuations, I think this is one of the key things for investors: if you don't meet all the numbers and significantly exceed expectations, you could be penalized in the share price.

One thing I think investors should be watching today is that I wouldn't be surprised if Broadcom's stock actually rebounded. If the market recovers, I wouldn't be surprised if we see Broadcom in positive territory by the end of the day, because this was a good report, perhaps only the forward guidance for the current quarter caused this effect.