NEW YORK, Jan 16, 2026, 16:15 EST — After-hours
- Broadcom shares ended higher by 2.6%, closing at $351.77 after fluctuating between $344.27 and $354.30.
- Semiconductor shares gained ground while the broader U.S. market held mostly steady in the last session before the holiday break.
- Traders balanced positive signs from chip demand and new Wall Street ratings with lingering China-related concerns over VMware.
Broadcom Inc. shares ended Friday up 2.6%, closing at $351.77 after the chip sector found some footing ahead of the long weekend. The stock hit a high of $354.30 and dipped to a low of $344.27 during the session.
This matters because Broadcom stands at the crossroads of two forces investors keep circling back to: data-center spending driving AI growth, and sudden policy risks that can disrupt both its software and hardware businesses.
Traders are also wrestling with separating short-term headlines from real shifts in orders. Broadcom’s mix—selling data-center networking chips and owning VMware—complicates tying the news to just one product cycle.
U.S. stocks closed mostly flat, while the Nasdaq nudged up 0.1%. The semiconductor index climbed 1.1%, building on gains from Thursday. “In my mind, the most important thing is the growth companies and the big technology companies,” noted Bruce Zaro, managing director at Granite Wealth Management. 1
Chip stocks found support this week after Taiwan Semiconductor Manufacturing Co reported profits that outpaced forecasts and outlined robust growth ahead, alongside a hefty capital spending plan for 2026. “While the likes of Nvidia, Broadcom and AMD fight it out for chip supremacy, TSMC ultimately benefits as the key manufacturer of all their chips,” said Ben Barringer, head of technology research at Quilter Cheviot. 2
Broadcom received a boost after Wells Fargo upgraded the stock to “Overweight,” signaling expectations it will beat its benchmark. The firm also lifted its price target to $430 from $410, pointing to a recent dip and possible growth drivers through 2026. 3
The week hasn’t been smooth. Sources told Reuters that Chinese regulators instructed domestic firms to halt the use of cybersecurity software from over a dozen U.S. and Israeli companies, including VMware, which is owned by Broadcom. Following the report, Broadcom’s shares dropped more than 4% on Wednesday. Reuters was unable to verify the full scope of the directive. 4
Broadcom stood out, beating several rivals. Nvidia slipped 0.5%, Marvell Technology barely moved, and U.S.-listed TSMC shares inched up 0.2%.
The risk scenario is clear. Should China accelerate its move away from foreign cybersecurity tools, investors could start factoring in a slowdown for VMware’s growth, despite companies downplaying their direct exposure to China. Another potential drag is a slowdown in cloud spending on AI infrastructure following a blistering streak, which could rapidly stall order momentum for chipmakers.
Next week will put the chip rally to the test as a busier macroeconomic and earnings calendar looms. U.S. markets are closed Monday for Martin Luther King Jr. Day, then earnings ramp up with Netflix reporting Tuesday, followed by other major companies throughout the week. “Because of the amount of noise we have around geopolitics and policy, it is literally an imperative that earnings actually carry the news cycle,” said Art Hogan, chief market strategist at B Riley Wealth. 5
