New York, Jan 15, 2026, 09:34 EST — Regular session
Broadcom shares climbed early Thursday following a Wells Fargo upgrade. The chipmaker’s stock gained 1.7%, hitting $345.74, recovering some ground after a sharp drop the previous day. 1
Why it matters now: Broadcom is deeply embedded in the data-center surge, providing both chips and networking equipment, along with owning VMware, a key player in infrastructure software. The stock slid over 4% Wednesday after Reuters reported that Beijing ordered local companies to halt use of cybersecurity software from more than a dozen U.S. and Israeli firms, including VMware, which Broadcom owns. 2
Investors are shifting away from expensive growth stocks amid renewed trade tensions, even as optimism for AI-related demand resurfaces with fresh chip updates. Reuters’ Morning Bid noted that “blockbuster” earnings from Taiwan Semiconductor might ease market nerves after tech stocks dipped Wednesday in the U.S. 3
Wells Fargo bumped Broadcom to Overweight from Equal Weight, lifting the price target to $430 from $410, TheFly reports. The bank called fears around gross margins “overdone” and highlighted potential gains from Google’s TPU—its proprietary AI chip—plus growth in custom “XPU” deployments, which are specialized AI accelerators, alongside solid data-center networking momentum. 4
RBC Capital kicked off coverage of Broadcom on Thursday, assigning a Sector Perform rating and setting a $370 price target, according to TheFly. Analyst Srini Pajjuri noted that TPUs “appear to have a lot of momentum” in the near term but flagged uncertainty around the longevity of an “Anthropic ramp.” He also described the timing and scale of the OpenAI opportunity as “less clear.” 5
Taiwan Semiconductor gave chip stocks a boost overnight after reporting quarterly profits that blew past forecasts. The company also signaled it’s ramping up investment, citing strong demand for AI chips. TSMC laid out plans for 2026 capital spending between $52 billion and $56 billion, with expected revenue growth near 30% in U.S. dollar terms. 6
Broadcom took a hit on Wednesday after a China cybersecurity report, and other companies linked to the story felt the impact too. Barron’s referenced a Reuters report highlighting early losses for Palo Alto Networks and Fortinet, with Broadcom sliding amid concerns related to VMware. 7
Pinning down the full downside is tricky. Reuters couldn’t confirm how many Chinese firms got the notice, and regulators in China have stayed silent despite repeated inquiries. The companies involved haven’t made any public statements either. 8
Broadcom’s risk profile now hinges on both policy and product factors. Investors are debating if cybersecurity software restrictions will remain limited, and whether the AI expansion continues to drive demand for custom chips and advanced networking gear — though margins remain a sticking point.
Traders are now eyeing any official word or clearer enforcement guidance from Chinese regulators, along with any additional filings. Broadcom disclosed in an SEC filing that it intends to redeem several note series on Jan. 17 and Jan. 22. VMware is set to redeem a different note series on Feb. 6. 9
