New York, Feb 10, 2026, 09:46 EST — Regular session
- Broadcom shares down about 0.3% early Tuesday after a 3.3% gain in the prior session
- Cisco launches a new Silicon One G300 switch chip aimed at AI data centers, a market Broadcom has been chasing with its Tomahawk line
- Traders are also bracing for U.S. payrolls data on Wednesday and CPI on Friday, with Broadcom earnings due March 4
Broadcom Inc shares edged lower in early trade on Tuesday, down 0.25% at $343.09 after climbing 3.31% in the previous session. The stock is about 17% below its 52-week high of $414.61.
The move comes as Cisco Systems on Tuesday rolled out a new switch chip and router aimed at speeding data through AI data centers, stepping into a market where Broadcom’s “Tomahawk” chips and Nvidia’s networking gear already compete. Cisco said its Silicon One G300 chip is expected to go on sale in the second half of the year and will be built on Taiwan Semiconductor Manufacturing Co’s 3-nanometer process; Cisco expects it to help some AI computing jobs get done 28% faster. “We focus on the total end-to-end efficiency of the network,” Cisco executive vice president Martin Lund said. Reuters
Why it matters now: chip stocks have been whipping around big spending plans for AI and the fear that returns will not match the bill. U.S. markets just clawed back ground on Monday — the Nasdaq rose 0.90% and the Philadelphia semiconductor index gained 1.4% — and investors now face the delayed January payrolls report on Wednesday and January CPI on Friday. “You’ve a sharply oversold market where a little bit of good news can go a long way,” Keith Lerner, chief investment officer at Truist Advisory Services, said. Reuters
For Broadcom, the next question is whether the AI buildout keeps translating into durable demand for the less glamorous parts of the stack — the chips that move data between servers and keep those systems from choking when traffic spikes.
Cisco’s announcement underlines the pressure. As more firms pitch “plumbing” for AI clusters, pricing power can get messy fast, especially in networking where customers often mix and match gear.
There is another risk investors have not forgotten: margins. Broadcom warned in December that a rising mix of custom AI processors can squeeze profitability, a sore point for a market already jumpy about how much Big Tech is spending to chase AI.
Broadcom has also been trying to balance its semiconductor push with its infrastructure software business, leaving investors to parse whether the company can keep growth steady without giving up too much on costs.
The next hard catalyst is close. Broadcom said it will report first-quarter fiscal 2026 results after the market closes on Wednesday, March 4, with a conference call scheduled for 5:00 p.m. Eastern.
On that call, traders will look for color on AI-related orders and networking demand, and for any hint that competition is forcing discounts. Guidance will likely do most of the moving.
Until then, Broadcom’s tape may keep taking cues from the macro prints later this week — and from any fresh signals that the AI infrastructure race is still speeding up.
