New York, January 12, 2026, 16:49 ET — Trading after hours.
Broadcom Inc shares climbed 2.1% to $352.21 in after-hours trading following Monday’s session, where prices fluctuated between $337.80 and $353.89. The day saw roughly 20.9 million shares change hands.
The stock notched a second day of gains, outpacing the broader market’s slight uptick, though it remains roughly 15% shy of its December 52-week peak. Traders are wrestling with what will drive the next move for major AI-related chip stocks—demand, profit margins, or interest rates. 1
Cathie Wood’s ARK Invest has taken a new position in Broadcom, snapping up 31,573 shares valued at roughly $10.5 million, according to Barron’s. The buy came as the stock pulled back, the report noted. 2
Broadcom is setting a high bar for this quarter. CEO Hock Tan recently said the company expects “AI semiconductor revenue to double” year-on-year, hitting $8.2 billion. It also forecast total first-quarter revenue around $19.1 billion, with adjusted EBITDA — a profit metric excluding some costs — projected to reach 67% of revenue. 3
That outlook didn’t come without a cost. Broadcom shares dropped steeply in December after the company warned of margin pressure from a higher proportion of lower-margin custom AI processors. It was a clear sign that boosting AI sales doesn’t automatically translate to bigger profits. 4
Rates are shifting again this week. Major banks are shelving their predictions for U.S. Federal Reserve rate cuts, reacting to recent labor-market figures. Such changes can rapidly impact tech and chip stocks, which are sensitive to valuations. 5
The initial gauge arrives Tuesday with the U.S. consumer price index for December set for release at 8:30 a.m. ET, per the Bureau of Labor Statistics schedule. 6
Chip stocks showed a mixed picture Monday. Nvidia held steady, but Qualcomm and Intel each dropped over 3%, highlighting a sharp divide between AI-focused infrastructure plays and those tied to consumer demand.
Investors will be watching Taiwan Semiconductor Manufacturing Co’s quarterly results later this week for signals on AI data-center demand and the tight supply of cutting-edge chips. TSMC’s earnings call is scheduled for Thursday, the company confirmed. Analysts are forecasting a significant year-on-year profit increase, Reuters noted. 7
Looking ahead, the Fed’s meeting on Jan. 27-28 is the key policy event on the horizon. While markets aren’t expecting a hawkish shock, the possibility lingers—especially for high-multiple stocks. 8
Bullish bets on Broadcom face a tricky mix: inflation coming in hotter than expected, pushing yields higher; indications that AI capex might be straining budgets; and margins lagging behind revenue gains. In that scenario, even “good growth” can struggle to hold up in the market.
Broadcom’s next earnings report, expected around March 5 per Nasdaq’s earnings calendar, is the upcoming event to watch. Investors will be focused on whether the company maintains or lowers its AI revenue and profit forecasts. 9
