NEW YORK, December 28, 2025, 18:20 ET — Market closed.
- Broadcom shares last closed up 0.6% at $352.13 in the most recent session on Friday. [1]
- U.S. stocks dipped slightly in thin, post-Christmas trading, leaving chip names to drift with the broader tape. [2]
- Investors remain keyed on Broadcom’s AI-driven growth versus pressure on profit margins flagged in its latest outlook. [3]
Broadcom Inc. shares ended Friday’s session up 0.6% at $352.13, in subdued post-Christmas trading before U.S. markets shut for the weekend. [4]
The muted move matters because Broadcom has become a bellwether for the market’s “AI infrastructure” trade — a bet that heavy spending on data centers will keep powering chip and networking demand into 2026. [5]
It also comes as investors head into the so-called Santa Claus rally period — the last five trading days of the year and first two of the new one — when volumes can thin and price swings can look bigger than the news flow. [6]
On Friday, Wall Street closed slightly lower, with the S&P 500 down 0.03% and the Nasdaq Composite down 0.09%, Reuters reported. Trading volume on U.S. exchanges was well below recent averages, the report said. [7]
Chip stocks were steadier. The Philadelphia semiconductor index edged up 0.05% on Friday. [8]
Nvidia gained 1% after a licensing deal with Groq and hiring its CEO, a move that kept attention on the AI hardware complex more broadly, Reuters said. [9]
Broadcom’s last major catalyst remains its December results and outlook. The company reported fourth-quarter revenue of $18.0 billion, up 28% from a year earlier, and guided for first-quarter fiscal 2026 revenue of about $19.1 billion. [10]
“AI semiconductor revenue increasing 74% year-over-year,” CEO Hock Tan said in the company’s release. [11]
But the same update sharpened investor focus on profitability. Broadcom said gross margins would dip as AI-related revenue becomes a larger share of the mix, Reuters reported, with CFO Kirsten Spears pointing to about a 100-basis-point sequential decline. [12]
Broadcom generates revenue from both semiconductor solutions and infrastructure software, the company said, a combination investors have leaned on for cash flow as hardware demand cycles. [13]
The board declared a quarterly cash dividend of $0.65 per share, payable on Dec. 31, the company said. [14]
From a chart-watching perspective, Broadcom ended Friday below its 50-day moving average of about $362 but well above its 200-day moving average near $287, according to Yahoo Finance data. [15]
Before the next session, investors will be watching whether the year-end “Santa Claus” window can keep the broader market near record levels, after the S&P 500 finished Friday just shy of 7,000. [16]
For Broadcom, the next key milestone is its fiscal first quarter ending Feb. 1, 2026, with the next earnings update expected in early March; Yahoo Finance’s calendar lists March 4 after the close. [17]
Traders say the near-term debate is unchanged: whether AI-driven sales growth can keep accelerating while Broadcom manages the margin trade-offs that spooked the stock after its latest outlook. [18]
References
1. finance.yahoo.com, 2. www.reuters.com, 3. www.reuters.com, 4. finance.yahoo.com, 5. www.sec.gov, 6. www.reuters.com, 7. www.reuters.com, 8. www.investing.com, 9. www.reuters.com, 10. www.sec.gov, 11. www.sec.gov, 12. www.reuters.com, 13. www.sec.gov, 14. www.sec.gov, 15. finance.yahoo.com, 16. www.reuters.com, 17. www.sec.gov, 18. www.reuters.com
