NEW YORK, December 29, 2025, 09:39 ET — Regular session
- Broadcom shares fell about 1.4% in early trading after closing Friday at $352.13.
- Wall Street opened lower as the late-December rally paused, with the Nasdaq down about 0.8% at the bell, Reuters reported.
- Chip stocks were in focus after a filing showed Nvidia took a roughly $5 billion stake in Intel.
Broadcom shares fell about 1.4% to $347.37 in early New York trading on Monday, underperforming a softer tech sector as investors turned cautious in the final week of 2025.
The move matters now because Broadcom sits in the middle of the market’s crowded “AI infrastructure” trade, where investors have been quick to reprice stocks when growth comes with lower profitability. Broadcom has been trying to convince investors that surging sales tied to artificial intelligence will translate into durable earnings, not just bigger revenue. Reuters
Broader equities offered little support. Wall Street’s main indexes opened lower, with the Nasdaq Composite down about 0.8% and the S&P 500 off about 0.4% at the opening bell, Reuters said.
The semiconductor group remained a key driver of sentiment. Nvidia shares fell after a regulatory filing showed it had taken a roughly $5 billion stake in Intel, a disclosure that drew fresh attention to positioning across the chip sector.
Broadcom had no fresh corporate announcements in the hours leading into Monday’s session. The company sells networking chips used to connect servers in data centers and also owns VMware’s enterprise software business.
Investors are still digesting Broadcom’s December results and outlook, which paired a strong revenue forecast with a warning on profitability. The company projected first-quarter revenue above Wall Street estimates but said margins would fall as AI-related products made up a larger share of sales.
On that call, Broadcom CFO Kirsten Spears said gross margin was expected to decline “about 100 basis points” sequentially — a basis point is one-hundredth of a percentage point. Gross margin measures how much of each sales dollar is left after the cost of goods. Reuters
Early Monday, Broadcom traded in a tight band by recent standards, with the stock fluctuating between $344.69 and $348.94, according to Investing.com data.
Some investors are treating the pullback as a valuation reset after a strong run earlier in 2025. Broadcom’s 52-week range has stretched from $138.10 to $414.61, underlining how quickly sentiment has swung around AI-linked chipmakers.
Sell-side expectations remain elevated despite the volatility. Analysts tracked by Investing.com show an average 12-month price target of about $456.80, implying roughly 32% upside from Monday’s early trading level.
The next major catalyst is Broadcom’s next earnings report, which Investing.com lists for Feb. 26, 2026. Traders say the report will be judged on AI order visibility, customer concentration, and whether margins stabilize as volumes scale.
Income-focused investors also have a near-term date on the calendar. A securities filing shows Broadcom’s board approved a quarterly cash dividend of $0.65 per share, payable Dec. 31 to shareholders of record on Dec. 22.
For now, price action is doing some of the talking. With the stock hovering near the mid-$340s in early trade, technicians will be watching whether Broadcom holds above the session’s lows around $345.
Until the next company update, Broadcom is likely to keep moving with the broader chip complex — and with any read-through on 2026 AI spending plans from its largest cloud and data-center customers.
