NEW YORK, Feb 25, 2026, 16:56 EST — Trading picks up after the bell.
- Broadcom (AVGO) finished 2.1% higher, with shares ticking up a bit more in after-hours trading.
- Nvidia’s strong outlook kept the spotlight on demand for AI hardware throughout the sector.
- Shifting hyperscaler supply agreements and upcoming software renewals are what analysts now identify as the next hurdles for the stock.
Broadcom ended Wednesday up 2.1% at $332.31, then tacked on another 0.4% in after-hours, last trading around $333.52 following the 4 p.m. bell. Investors took their cue from Nvidia, whose upbeat outlook lifted the mood for AI chip stocks.
The shift is significant as investors hunt for clues about which firms will fuel the coming phase of data-center expansion—and how the deals get struck. Broadcom stands right at the crossroads, with its high-end networking gear and custom silicon powering major computing operations. The company is also banking on infrastructure software as a key growth pillar.
Broadcom shares slipped roughly 2% the previous day after reports surfaced that AMD secured Meta Platforms as a heavyweight customer for tailor-made AI chips—a deal valued at up to $60 billion. “The main negative impact from the deal is on Broadcom,” D.A. Davidson analyst Gil Luria noted. Reuters
The report notes Meta picked up a warrant giving it the option to acquire as much as 10% of a new AMD division working on the project—at a fixed price. Santosh Janardhan, Meta’s infrastructure chief, put it plainly: “All of the chip makers end up having sort of a seat at the table,” he said. Reuters
Broadcom’s next earnings are pulling analyst forecasts in different directions. TD Cowen trimmed its price target to $405 from $450, sticking with a Buy, and pointed to growing AI infrastructure hopes—even as the stock’s valuation has slipped.
UBS stuck with its Buy rating and $475 price target, but pointed to some fresh concerns around Broadcom’s software segment. Analysts there warned about the chance of increased VMware customer churn in 2026 and 2027 as those three-year contracts hit renewal.
Wednesday saw broad gains. U.S. stocks finished in positive territory, lifted by chipmakers; the Philadelphia Semiconductor index climbed 1.6%. Nvidia drove the sector higher, beating revenue expectations and sending its stock up roughly 3% after hours, according to Reuters.
On Tuesday, Broadcom’s VMware division issued a high-severity security advisory for Aria Operations, flagging three CVEs and confirming that patches and mitigations are now available for impacted products.
But the risk isn’t exactly hidden. Major deals—think AMD’s agreement with Meta—show just how fast heavyweight buyers can pivot, bringing in new suppliers or tweaking the balance between their own chips and external partners. If Broadcom starts slipping in custom AI silicon, or if those software renewals sour further, the stock could take a hit.
The regular session has wrapped up, but traders are already eyeing Nvidia’s results as a potential catalyst for AI-hardware names heading into Thursday. Next up is Broadcom, which is set to deliver its quarterly numbers after the bell on March 4, with a conference call scheduled for 5 p.m. ET.
