AI Stock Pullbacks Put Broadcom, Bloom Energy, and Sandisk Under the Microscope

Key Takeaways

• Broadcom reported AI semiconductor revenue of $16.7 billion in its fiscal third quarter of 2026, a 221% year-over-year jump, yet its shares have fallen 14.6% over the past month.
• Bloom Energy posted record quarterly revenue exceeding $1 billion for the first time and raised its full-year guidance; the stock is up 19% over the past month and is expected to join the S&P 500 on September 21, 2026.
• Sandisk recorded a 1,298% year-over-year increase in data center revenue to $3 billion in its fiscal fourth quarter and carries a forward P/E well below the conventional undervalued threshold of 10.
• The AI pullback was uneven: some stocks saw single-digit declines while others lost more than 40%, creating a wide range of entry-point dynamics across the sector.

After leading the market earlier in the year, a broad group of AI-linked stocks sold off over the summer, with some names falling more than 40%. Zacks strategist Tracey Ryniec examined whether three companies—Broadcom (AVGO), Bloom Energy (BE), and Sandisk (SNDK)—now offer value after their respective retreats.

Numbers at a Glance

Broadcom Q3 FY2026 AI Revenue

$16.7 billion

Represents a 221% year-over-year rise; Broadcom projects this figure will reach $21.7 billion in Q4 FY2026, a 236% year-over-year increase.

Sandisk Full-Year Data Center Revenue (FY2026)

$5.1 billion

Reflects a 437% annual jump, driven by surging demand for memory in AI data centers and AI-enabled devices.

Broadcom Record Free Cash Flow (Q3 FY2026)

$13.7 billion

Up 95% from the same quarter a year earlier, providing a measure of financial flexibility alongside $24 billion in cash and equivalents.

Bloom Energy Forward P/E

104

Reflects elevated growth expectations; earnings are projected to rise 238% in 2026 followed by another 85% gain in 2027.

How the Summer Selloff Created Divergent Valuations

The AI theme that energized markets earlier in 2026 gave way to a broad summer retreat. The declines were not uniform: some companies experienced modest single-digit losses while others shed more than 40% of their value. That spread matters because it produced very different valuation starting points heading into the fall.

Broadcom, despite a strong earnings report on September 2, 2026—its fifth consecutive year without an earnings miss—saw its stock drop 14.6% over the following month. Its forward price-to-earnings ratio of 31 is notably lower than Bloom Energy's 104, even though Broadcom's near-term earnings growth projection of 72.9% for fiscal 2026 is substantial. The contrast illustrates how the market is pricing growth certainty differently across the sector: a profitable, cash-generating semiconductor designer trades at a fraction of the multiple assigned to a fuel-cell manufacturer still in an earlier growth phase.

Memory, Power, and the Infrastructure Layer of AI

The three companies highlighted represent distinct parts of the AI supply chain. Broadcom sits in semiconductor design, Sandisk in memory storage, and Bloom Energy in on-site power generation for data centers—a segment that also includes cooling systems and data center interior construction.

Sandisk's numbers illustrate how memory demand is accelerating in step with AI deployment. Data center revenue rose 1,298% in a single quarter to $3 billion, and the company set records for revenue, gross margin, and earnings per share simultaneously. Earnings soared 2,270% in fiscal 2026, with another 201% increase projected for fiscal 2027. The stock's forward P/E sits well below 10, a level commonly associated with undervaluation, though sharp earnings-growth trajectories can compress such ratios quickly and make them less reliable as standalone signals.

Bloom Energy's trajectory is different. Its record quarterly revenue—crossing $1 billion for the first time—came alongside raised annual guidance. The anticipated addition to the S&P 500 on September 21, 2026 could trigger index-fund buying, which partly explains the stock's 19% gain over the past month. However, a forward P/E of 104 means investors are paying heavily for projected growth that has not yet fully materialized.

InvestorStack Lens

The three stocks illustrate a classic growth-versus-value tension within a single theme. Sandisk offers the lowest valuation multiple among the group and the highest recent earnings growth rate, which could appeal to investors focused on near-term fundamentals. Broadcom combines strong free cash flow and a five-year earnings-beat streak with a more moderate forward multiple. Bloom Energy carries the highest valuation risk if its projected earnings growth disappoints, but an index inclusion event could create near-term demand. None of these dynamics guarantee returns; they simply frame where the market's expectations are currently set relative to reported performance.

What Could Challenge This View

The most credible challenge to a bullish read on any of these names is that AI hardware spending cycles have historically been lumpy. If hyperscaler capital expenditure moderates or memory oversupply returns—as it has in prior semiconductor cycles—the extraordinary growth rates that justify current valuations could compress sharply. Sandisk's 2,270% earnings surge in fiscal 2026, for instance, followed deep prior-year losses, making percentage comparisons less informative than absolute margin trends going forward.

What to Watch Next

• Broadcom's fiscal fourth quarter 2026 revenue report, which the company has guided to $21.7 billion—a figure that would confirm or challenge the 236% year-over-year growth trajectory.
• Bloom Energy's inclusion in the S&P 500 on September 21, 2026, and whether trading volume and price behavior around the rebalancing align with typical index-addition patterns.
• Sandisk's fiscal 2027 earnings progression, given that analysts project a further 201% increase after the 2,270% surge already recorded.
• Whether the broader AI stock group's summer pullback deepens or stabilizes, since the source notes declines ranged from single digits to more than 40% across different names.
• Bloom Energy's full-year 2026 revenue outcome relative to its raised guidance, which will test whether crossing the $1 billion quarterly milestone represents a durable trend.