New York, Jan 31, 2026, 17:46 EST — Market closed.
- Shares of Broadcom closed Friday slightly higher, rising 0.17% to $331.30.
- Wolfe Research upgraded its rating to Outperform, with a $400 price target.
- Broadcom’s recent steps with VMware partners are facing renewed scrutiny in Europe.
Broadcom Inc. shares edged up Friday, gaining 0.17% to close at $331.30, after Wolfe Research raised its rating on the chip and software company. The upgrade put Broadcom back in focus for investors as the new week approaches. (MarketWatch)
Timing is key. U.S. tech has been jolted by changing rate forecasts and headline jitters, with semiconductors caught in the crossfire despite scant company updates. On Friday, stocks dropped as investors digested President Donald Trump’s nomination for the next Fed chair, ongoing inflation concerns, and a packed earnings calendar. (Reuters)
Broadcom’s focus is tightening: it’s all about how much AI spending will flow into custom chips and networking equipment, and if that surge can make up for weaknesses in legacy chip sales and the VMware software shift.
Wolfe analyst Chris Caso upgraded Broadcom to Outperform from Peer Perform, setting a $400 price target, according to TheFly. He highlighted that other projects were “creating optionality for numbers” and insisted Wolfe could “no longer ignore” Broadcom’s traction in Google’s tensor processing units. (TipRanks)
Wolfe’s call centers on Alphabet’s TPU effort — Google’s proprietary AI accelerator — and the potential boost from opening up TPUs to external users, expanding the market beyond Google alone. The firm also raised its forecasts for Broadcom’s AI custom-chip segment (ASICs, or application-specific integrated circuits), outlining a bullish scenario driven by much stronger AI and networking sales in 2026 and 2027. (Investing)
The upgrade came amid a tough session for the sector. Chip and AI infrastructure shares fell Friday, with sharp declines hitting equipment and storage names. Broadcom, however, bucked the trend and closed higher. (Nasdaq)
Investors remain focused on Broadcom’s approach to VMware’s channel strategy, a sticking point since the acquisition. The Register reported Broadcom informed some VMware Cloud Service Provider partners that the current Advantage Partner Program is ending for them, urging they close open deals by March 31. A Broadcom spokesperson said the company aims for “simplification, consistency, and innovation” and prefers to collaborate more closely with a smaller group of partners. (The Register)
This matters since VMware-related sales and renewals are now tied directly to Broadcom’s AI story. If customers hold back, partners falter, or renewals slow down, it could hit the stock—even with the chip cycle still holding strong.
There’s a definite risk here. If cloud clients cut back on capital spending or shift toward lower-margin AI projects, Broadcom’s earnings might fall short of the upbeat forecasts. On the software side, stricter partner programs could spark some disruption — and even churn — before delivering steadier revenue.
The next major market test arrives quickly. The U.S. jobs report for January is scheduled for Feb. 6 at 8:30 a.m. ET. This figure often shifts rate expectations and, in turn, impacts high-multiple chip stocks. (Bureau of Labor Statistics)
Next week’s tape will also be influenced by chip earnings from peers like Advanced Micro Devices and Qualcomm. Both companies are often seen as key indicators for data-center demand. (Kiplinger)
Traders are also keeping an eye on Broadcom’s upcoming earnings, slated for early March. Nasdaq’s earnings calendar lists the expected date as March 5. (Nasdaq)
