New York, February 10, 2026, 15:51 EST — Regular session
- Broadcom shares slipped roughly 1% in afternoon action, hovering close to the day’s lows.
- Cisco rolled out a new Silicon One switch chip targeting AI data centers, putting it in direct competition with Broadcom’s Tomahawk series.
- UBS lowered its outlook on the U.S. tech sector to neutral but left its Buy rating on Broadcom unchanged.
Broadcom (AVGO.O) slipped roughly 1% Tuesday, losing ground after an early move higher. The drop came as investors mulled new chatter about rivals in data-center networking. Shares last traded at $340.45, the low of the session, after swinging between $349.97 and $340.45.
Cisco Systems (CSCO.O) introduced its new Silicon One G300 switch chip and router on Tuesday, targeting faster AI data center traffic and putting it in direct competition with Broadcom’s “Tomahawk” series and Nvidia’s networking hardware. According to Cisco, the chip, built with Taiwan Semiconductor’s 3-nanometer process, is slated for launch in the year’s second half. “We focus on the total end-to-end efficiency of the network,” said Martin Lund, executive vice president of Cisco’s common hardware group. 1
This timing is key as the AI trade moves out of an easy spending surge and into a more cutthroat race for profits. UBS cut its rating on the U.S. tech sector to neutral on Tuesday, cautioning that AI capex—cash going into data centers and gear—might be topping out after a steep climb. The bank argued that such a slowdown “could improve investor perceptions of those doing the spending, but is a potential negative for some companies in the enabling layer.” 2
UBS kept its stance bullish on Broadcom, with analyst Timothy Arcuri holding firm on his Buy rating and $475 price target. He flagged ramping demand around TPU products—those custom AI chips, Tensor Processing Units, that play a big part in data centers. Broadcom, he noted, remains a major supplier for these deployments. 3
Chip names lost ground, with Nvidia down 0.6% and AMD sliding 1.1%. Micron shed 3.4%. Over on the upside, U.S.-listed TSMC picked up 1.6%. The VanEck Semiconductor ETF dipped 0.7%. Invesco QQQ trust edged lower by 0.4%, and the broader S&P 500 ETF barely moved.
The broader market bounced around as U.S. retail sales for December landed flat, while investors waited for the delayed nonfarm payrolls report set for Wednesday. “Nobody wants to get too far above their risk budget,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott. 4
Broadcom holds a prime spot in the AI supply chain, providing the custom chips and networking silicon essential for linking up massive processor clusters. The company’s sizable infrastructure-software division offers extra support, especially when chip demand slows.
Still, forecasting is getting trickier. Data-center networking faces fiercer competition, which could pressure prices. If cloud clients start pushing out orders, Broadcom would feel it fast. Investors want to know if the company can boost AI sales and keep margins intact.
Broadcom has its next major update coming March 4, when it will release fiscal first-quarter results after the U.S. market closes. The conference call gets underway at 5 p.m. ET. Investors are watching for any guidance around AI-related demand and networking orders—these will probably steer the stock’s direction into March. 5
