The market has once again been dragged down by AI stocks, with Broadcom falling over 11% today, not only dragging down the Nasdaq but also bringing down cryptocurrency. Right now, crypto is quite like a chamber pot; it doesn't rise when the market is up, but it falls when the market is down. Let’s take a simple look at the reasons for Broadcom's decline: Broadcom's stock price fell after it reported earnings and profits that "exceeded expectations". This market reaction mainly stems from structural concerns and resonance at the trading level. Revenue: The actual recorded revenue was $18.02 billion, better than the market expectation of $17.50 billion, achieving not only a high year-on-year growth but also surpassing Wall Street's general estimates. Earnings per Share (EPS, Non-GAAP): The actual EPS was $1.95, also beating the expected $1.87. Despite the company's fundamentals remaining robust and significant growth in AI business revenue, the management's guidance that "the increase in the proportion of AI hardware will temporarily drag down overall gross margins" became the trigger for market profit-taking. I personally believe that the essence of this pullback is the market's correction of high valuations (valuation killing) and a rational return to overly optimistic expectations for the AI sector over the long term, similar to how the market nitpicked after Nvidia's earnings release. Broadcom has seen a huge increase this year, and with the year-end approaching, institutional funds tend to lock in profits due to performance assessment pressures, further exacerbating the selling pressure. In summary, Broadcom's earnings report performance is actually within a normal and healthy range. The current stock price fluctuations are more based on adjustments in capital and sentiment rather than a deterioration in the company's core competitiveness. The market is rebalancing expectations between high growth in AI and profit margins, and this pullback is a necessary process to digest the previously high valuations.