(NASDAQ: AVGO) investors got a reality check last week following the release of the company's fiscal 2024 third-quarter results (for the three months ended Aug. 4). As a result, shares of the semiconductor giant tumbled more than 10% in a single session, even though its revenue and earnings exceeded expectations. The chipmaker fell victim to Wall Street's ambitious expectations as its guidance for the current quarter couldn't match consensus estimates.

Those investors shouldn't be too upset though. Broadcom's business continues to get a nice boost from the growing demand for its custom processors and networking chips that are deployed in artificial intelligence (AI) data centers. That boost helped Broadcom's price rise nearly 81% over the past year, even after the post-earnings price drop.

Let's take a closer look at Broadcom's latest results and check if investors should use its drop as an opportunity to buy an AI stock that could deliver healthy gains over the next three years.

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Source Fool.com