New York, February 26, 2026, 10:31 EST — Regular session
- Broadcom (AVGO) dropped roughly 6.8% in the opening session, erasing the previous day’s advance.
- Chip names slipped, with Nvidia’s results landing to a lukewarm reception.
- Broadcom has set its sights on 3D “stacked” chips for 2027. The company’s next big event comes sooner: earnings drop on March 4.
Broadcom Inc. shares slid 6.8% to $309.77 by 10:32 a.m. ET. The stock opened at $326.09, only to tumble as low as $309.06 in early moves. On Wednesday, it had wrapped up the session at $332.31 on the Nasdaq.
Broadcom is riding Nvidia’s earnings wake, but that hasn’t been enough to reignite the broader AI rally—investors are still wary of the big chip stocks. U.S. equities started the day on the back foot, despite Nvidia posting strong results, according to Reuters.
Nvidia dropped 3.1% to $189.67 out of the gate, even after posting stronger-than-expected results and raising its outlook, according to Reuters. That move dragged down key U.S. indexes and put pressure on the rest of the chip sector.
Broadcom rolled out a longer-range AI plan, telling Reuters it’s targeting sales of at least 1 million chips by 2027. The company’s strategy: stack two chips on top of each other, aiming for faster data flow and lower power draw. Fujitsu, for its part, is already turning out engineering samples, with manufacturing of the 3D chips set for later this year. Broadcom claims its stacked design delivers a tenfold jump in energy efficiency and says two more stacked products are set to ship in the back half of 2026. “Now, pretty much all of our customers are adopting this technology,” said Harish Bharadwaj, vice president of product marketing. Reuters
This year, tech stocks have swung around as traders try to figure out which companies actually benefit from AI—and which ones wind up on the losing side. “AI will continue to disrupt the world but I don’t think it’s the end of the world,” said Ken Polcari, partner and chief market strategist at Slatestone Wealth. Reuters
Still, not everything is rosy outside the chip segment, some analysts warn. UBS kept its Buy on Broadcom and reaffirmed a $475 target earlier this week, but the firm highlighted risks on the software side—most notably, VMware customers could start leaving in 2026 and 2027, as their three-year contracts expire and come up for renewal.
The stacked-chip target stretches through 2027, but whenever AI stocks wobble, investor patience wears thin.
All eyes now turn to March 4—Broadcom drops its fiscal first-quarter results after the bell, with a conference call slated for 5:00 p.m. ET.
