New York, May 31, 2026, 16:02 (EDT)
- Broadcom finished Friday at $446.77 with a 4.73% gain, after trading as high as $448.90.
- U.S. markets are closed for the weekend after a shortened week with the Memorial Day holiday.
- Broadcom’s fiscal Q2 report on June 3 will be the next test for artificial intelligence chip demand and its outlook.
Broadcom Inc. wrapped up the holiday week at an all-time high. Investors now look ahead to Wednesday, when the chipmaker’s fiscal Q2 earnings are set to become a key test for the AI trade.
The stock added 4.73% to finish Friday at $446.77, after hitting $448.90 during the day. It’s up 7.9% over last Friday’s close of $414.14. Nasdaq trading was closed on Sunday, after a week cut short by the Memorial Day holiday on Monday when U.S. exchanges were also shut.
Broadcom is now seen as a big player in custom AI chips, beyond networking and software. Its earnings are out after the bell on June 3, and management will hold a call at 5:00 p.m. ET.
Broadcom in March projected second-quarter revenue of roughly $22.0 billion, a 47% rise from last year. CEO Hock Tan at the time said, “our AI revenue growth is accelerating,” with the company looking for AI chip revenue to reach $10.7 billion for the quarter. Broadcom Inc.
AI demand is the swing factor. Broadcom makes application-specific integrated circuits, or ASICs, and networking hardware for big data centers. That’s apart from Nvidia, which leads the graphics processor market for AI model training and inference.
Susquehanna’s Christopher Rolland lifted his price target on Broadcom to $490 from $450 and kept a Positive rating ahead of the results. Rolland said momentum around custom XPU should stay solid. XPU refers to processors used for AI and other accelerated workloads.
Oppenheimer analyst Rick Schafer was bullish too, saying he expects “upside F2Q results and F3Q outlook led by AI,” per Seeking Alpha. But he’s talking expectations, not actual numbers, and the stock has already had a big run so expectations are high. Seeking Alpha
Report on Anthropic financing brings Broadcom into focus
Reuters, citing Bloomberg News, said Apollo Global Management and Blackstone are arranging about $36 billion in debt for Anthropic’s AI hardware buildout. The money would go toward buying Google tensor processing units, AI chips designed by Google, with Broadcom backstopping the biggest pieces of the deal.
Marvell Technology now sees its custom-chip revenue topping $10 billion by fiscal 2029, Reuters said last week, as cloud companies buy more chips tailored for their own data centers and look to depend less on Nvidia processors. Marvell and Broadcom are both working with these cloud firms on custom chip design.
Marvell’s outlook points to “another robust growth year in FY29,” Morningstar analyst William Kerwin said. He said the guide shows the custom-chip market is moving beyond just one player. CEO Matt Murphy told analysts Marvell had custom work “across the board” with U.S. hyperscalers, the big cloud operators buying and building AI infrastructure. Reuters
Broadcom continued to push its non-AI business last week. The company rolled out a fixed wireless access platform using 5G and Wi-Fi 8 in a tie-up with Samsung Electronics. It said carriers globally have started trials, and OEMs are sampling. Wi-Fi 8 is still in development as the next wireless networking standard for home and enterprise use.
S&P 500 was up 0.2% Friday, closing out a ninth consecutive week of gains, AP reported. The Nasdaq also gained 0.2% on the session and ended the week 2.4% higher. Chips caught a lift into month-end. That meant Broadcom didn’t have to buck the market trend.
Risks are clear. Reuters said investors are bracing for the May jobs report on June 5. Markets are watching to see if strong hiring and sticky inflation will send Treasury yields higher. If yields climb, it can make it tougher to hold high-priced stocks. Liz Ann Sonders at Schwab told Reuters that a hot jobs report and rising inflation could shift the Fed’s path, but a weaker report might ease worries about policy tightening.
Broadcom’s miss isn’t the only thing traders worry about. Even if the quarter looks good, shares could take a hit if management’s July-quarter forecast doesn’t meet expectations for AI chip and networking growth, or if revenue tied to Anthropic and Google custom chips comes in slower than hoped. There isn’t much room left for Broadcom to give fuzzy guidance here.
