Broadcom stock is struggling for direction Tuesday after the chipmaker fell sharply Monday following the release of DeepSeek, a cheap AI chatbot.

Broadcom stock sold off on Monday following DeepSeek's release. Read why I think AVGO represents a solid short-term and long-term Buy.

DeepSeek is causing Broadcom to decline due to the AI company building its AI model at a fraction of the cost it took OpenAI and other U.S.-based AI companies to make their AI models. The shocking part of this is that the DeepSeek-R1 model performs much better than most of these models at a fraction of the cost.