New York, March 5, 2026, 17:12 (ET) — Trading after the bell.
- Broadcom climbed roughly 4.8% to $332.77 in after-hours trading.
- The company expects around $22.0 billion in revenue for the second quarter, with $10.7 billion of that coming from AI semiconductor sales.
- Friday’s U.S. jobs report is up next, with traders eyeing it for clues on rate moves.
Broadcom jumped 4.8% after hours Thursday, changing hands at $332.77. The chipmaker delivered a bullish outlook that kept investors focused on its artificial-intelligence hardware. The stock’s intraday range ran from $323.54 up to $342.14.
This update matters, with investors growing selective about AI—artificial intelligence—expansion. They’re watching for concrete evidence that the ongoing data center spending is actually leading to chip orders, rather than staying stuck in pitch decks.
Broadcom stands out as one of the rare suppliers touching both the compute side and the networking guts. The company moves networking equipment and custom accelerators—these are “ASICs,” application-specific integrated circuits, meaning chips tuned for a single purpose.
Broadcom booked $19.31 billion in revenue and posted non-GAAP diluted EPS of $2.05 for the quarter ending Feb. 1. CEO Hock Tan pointed to ramping AI revenue, with the company projecting $10.7 billion in AI semiconductor sales this quarter. “In Q2 we expect revenue growth to increase 47% year-over-year,” CFO Kirsten Spears said. The board also cleared a fresh $10 billion buyback plan running through Dec. 31, 2026, and set a quarterly dividend at $0.65 per share, to be paid March 31. PR Newswire
Tan told analysts the company now expects annual AI chip sales to top $100 billion by 2027—a pace that would put Broadcom firmly on Nvidia’s turf. For 2027, Broadcom is looking at roughly 10 gigawatts of AI demand from names like Anthropic and Meta. Tan said both chip capacity and high-bandwidth memory are locked in through 2028. This year, Alphabet, Microsoft, Amazon and Meta have all pointed to more than $600 billion in AI infrastructure spending, sharpening the focus on where the hardware dollars ultimately land. Reuters
Custom chips are drawing more interest, with big customers seeking cheaper options and stricter power limits compared to standard AI processors. Broadcom faces off with Marvell in the custom silicon space. Nvidia and AMD, though, still anchor the GPU market—the workhorses behind most AI model training and inference.
Broadcom aimed to ease concerns over potential AI-driven upheaval in its infrastructure software division. CEO Tan told investors the business is on track for 9% year-over-year growth, guiding to $7.2 billion in infrastructure software revenue for the fiscal second quarter. MarketWatch
Baird’s Tristan Gerra wasted little time, upping his price target to $630 from $420 and describing AI demand as “incremental, not cannibalistic.” Bernstein’s Stacy Rasgon pushed his target up as well—to $525 from $475. JPMorgan’s Harlan Sur moved to $500 from $475, according to TipRanks. TipRanks
Still, the wager leans heavily on just a handful of massive buyers. Should cloud and AI firms dial back on spending—or ramp up their own chip design efforts—orders tend to dry up quickly, and those lofty sector valuations can sink just as fast.
Traders are bracing for Friday’s U.S. jobs data, set for 8:30 a.m. ET, then turning to the February consumer price index on March 11. Both reports could rattle rate expectations — and by extension, demand for pricey growth shares. bls.gov
