New York, Feb 6, 2026, 10:21 a.m. EST — Market open for regular trading.
- Broadcom shares climbed roughly 4% in morning trading amid a wider bounce in chip stocks.
- Alphabet’s massive spending forecast for 2026 has shifted the spotlight back onto AI infrastructure suppliers.
- Investors are turning to Broadcom’s March 4 earnings for fresh insights on demand.
Shares of Broadcom Inc (AVGO.O) jumped almost 4% on Friday, hitting $322.82 in morning trading. Investors appeared to come back to AI-related chip stocks following a tough week for the tech sector.
Alphabet’s forecast points to capital expenditure hitting between $175 billion and $185 billion in 2026, covering investments in servers, data centers, and more. “Our AI investments and infrastructure are fueling revenue and growth across the board,” CEO Sundar Pichai told analysts. 1
Why it matters now: investors wrestle with soaring AI budgets while worrying profits might not keep pace. Big Tech’s planned $600 billion AI spending spree this year has rattled software and data stocks, which tumbled on worries about disruption. Traders are growing increasingly alert to signs that margins could take a hit. 2
Broadcom stands to benefit clearly. The company, which makes networking chips and custom processors called ASICs — application-specific integrated circuits — sees a direct impact. Jefferies analyst Blayne Curtis noted that Google’s increased capital expenditure “offers a significant vote of confidence for AI spend moving higher.” 3
The chip sector lit up Tuesday. Nvidia climbed around 4.7%, AMD jumped close to 6.1%, and Marvell gained just under 5%. Alphabet slipped about 2.8%, dragged down by investor concerns over the bill’s scale.
The iShares Semiconductor ETF jumped roughly 3.3% in early trade, mirroring a wider rebound among chipmakers.
The rebound follows a sharp sell-off that spilled far outside software. Reuters’ Morning Bid highlighted how AI fears have erased nearly $1 trillion from software stocks in just one week, with AMD among the steepest decliners during the turmoil. 4
Yet those spending plans, which boost suppliers, now pose a new risk. Amazon’s $200 billion capital budget for 2026 has reignited dot-com era echoes. MoffettNathanson pointed out that “the magnitude of the spend is materially greater than consensus expected,” setting the stage for potential letdowns. 5
Kristina Hooper, chief market strategist at Man Group, noted the market is shifting from “unabashed enthusiasm” to “a period of greater discernment.” This change is already reflected in how investors view hefty AI capital expenditure plans. 6
Jefferies stuck with its “top pick” rating on Broadcom and maintained a $500 price target, Investor’s Business Daily reported. The firm highlighted increased cloud spending on custom silicon as a key driver behind the bullish outlook. 7
Broadcom’s Q1 earnings report on March 4 will be a key moment, as investors look for shifts in demand from its biggest clients and updates on AI infrastructure purchases. The company plans to hold its earnings call at 5:00 p.m. ET. 8
