Broadcom rises even as semiconductor stocks sink on Fed decision
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Broadcom (NASDAQ:AVGO) pared gains on Wednesday as semiconductor stocks largely sold off as the Federal Reserve raised its key interest rate by 50 basis points and said it would continue raising rates into next year.
In a research note on Wednesday, Deutsche Bank analyst Ross Seymore said fundamentals for the semiconductor industry "largely held in better than expected," as revenues for companies (excluding memory) were up 14% in 2022. Looking to next year, it's expected there will be a revenue downturn, and that the recent rally in semiconductor names is "premature" given that there is likely to be "continued fundamental deterioration."
Seymore added that Deutsche Bank's preferred names going into next year are Marvell Technology (MRVL) and Qualcomm (NASDAQ:QCOM), along with Broadcom (AVGO) and Maxlinear (MXL).
San Jose, California-based Broadcom (AVGO) gained 0.6% to close at $574.44, while competitors Qualcomm (QCOM), and Intel (NASDAQ:INTC) both sank roughly 1.5%. 
Conversely, Advanced Micro Devices (AMD) and Nvidia (NASDAQ:NVDA) fell 3.8% and 2.2%, respectively. 
Analog chip companies Texas Instruments (TXN) and Analog Devices (ADI) finished lower by 1% and 2.2%, respectively. 
Other chip companies, including Micron Technology (MU), NXP Semiconductor (NXPI) and Microchip Technology (MCHP) also saw losses.
In addition to raising its key interest rate by 50 basis points, the Federal Open Market Committee said it expected rates to be between 5% and 5.5% next year, with another 75 basis points in interest rate hikes expected for 2023. 
Earlier this week, it was reported that Broadcom (AVGO) acquisition target VMware (VMW) saw three of its top executives leave the enterprise software firm.