New York, June 1, 2026, 19:02 (EDT)
- Broadcom shares changed hands at $459.97, up 3.0% from the last close, with fiscal Q2 earnings on tap Wednesday.
- Options are pricing in a possible 9% swing either way by the end of the week.
- Analysts have been raising their targets, treating the stock less like a regular chip play and more as an AI infrastructure story.
Broadcom Inc. shares gained roughly 3% late Monday as traders set up ahead of the chip and software firm’s quarterly report, seen as a test for demand on its AI chip business after a strong run this year. The stock last traded at $459.97. Volume was above 30 million shares, moving between $443.00 and $477.77 during the session.
Timing is in focus. Broadcom has its fiscal second-quarter numbers coming after the close on Wednesday, June 3. A management call is at 5 p.m. ET, according to the company. Nasdaq’s regular session is 9:30 a.m. to 4 p.m. ET, with after-hours trading running until 8 p.m. June 1 does not show up as a 2026 market holiday.
It’s not about Broadcom just topping a sales estimate for the quarter anymore. Investors want signs that demand for AI ASICs — chips built for specific workloads — and AI networking gear will keep up through 2027. Broadcom reported in March that first-quarter AI revenue grew 106% to $8.4 billion and gave guidance for $10.7 billion in AI chip revenue in the second quarter.
President and CEO Hock Tan said at the time that AI sales were “driven by robust demand for custom AI accelerators and AI networking.” CFO Kirsten Spears guided for second-quarter revenue of around $22.0 billion, a 47% increase from a year ago, with adjusted EBITDA projected at about 68% of revenue. Broadcom Inc.
The market’s expecting a big move in the stock, according to options pricing. Contracts tracked by traders suggest it could swing up or down as much as 9% by week’s end, Investopedia said. Based off Friday’s record close, that gives an upper target of $487 or a floor near $406.
Analysts mostly stayed bullish ahead of earnings. MarketScreener showed HSBC raising its target to $600 from $450 on Monday and Morgan Stanley moving to $485 from $470. Susquehanna upped its target on May 28 to $490 from $450. The site’s consensus page listed 47 analysts with an average “Buy” rating, mean target price at $485.72. MarketScreener
Susquehanna’s Christopher Rolland told TipRanks he’s still “optimistic on Broadcom’s ASIC business” with ongoing strength in networking. But he pointed to a risk from Broadcom’s lower short-term outlook, since initial Anthropic-related TPU shipments could lift just chip revenue rather than revenue for full racks. TPUs are tensor processing units used to speed up AI work. TipRanks
Nvidia jumped 6.3% late Monday. Marvell Technology added 7.0%. The iShares Semiconductor ETF was up 0.5%. Broadcom traded in line with the wider AI-chip sector, not as an outlier, as the competitive read-across stayed strong.
Broadcom is staking out a different approach from Nvidia. Nvidia is the leader in the general-purpose AI accelerators used for model training and inference, but Broadcom is focusing on custom chips and networking equipment targeted at big tech firms, Reuters said in March. Back then, Tan said Broadcom saw over $100 billion in AI chip revenue for 2027. D.A. Davidson’s Gil Luria said the outlook was “very encouraging.” Reuters
Software is a big part of the story here. Broadcom’s infrastructure software unit did $6.8 billion in first-quarter revenue, making up about 35% of sales, but year-over-year growth there was just 1%. With the stock trading at a premium, any letup from VMware, delays in customer ramps, or hints that AI orders are slipping could be a problem.
Cautious setup: expectations are higher ahead of the results. If revenue beats but the forecast doesn’t go up, or if margins take a hit from more AI chips, or if the company signals more worry about demand from Anthropic, OpenAI, Google, or Meta, shares could fall. The stock has already run up close to its average target price.
