New York, Feb 25, 2026, 10:55 EST — Regular session
- Broadcom shares climbed roughly 2% in morning trading, bouncing after a lackluster close the previous session.
- Nvidia reports earnings later Wednesday, and traders are zeroed in on what the results might reveal about AI chip demand.
- Broadcom is slated to report quarterly results March 4. Investors are watching margins and looking for updates on VMware renewals.
Shares of Broadcom Inc (AVGO) jumped $7.34, or 2.3%, to $332.83 Wednesday morning, with the stock riding a broader tech rally that nudged the Nasdaq roughly 1% higher. Broadcom’s market cap hovered near $1.59 trillion as the stock moved between $330.47 and $335.91 in early trading.
Broadcom plays a key role in the data-center expansion, providing networking chips and custom silicon to major cloud players fueling AI demand. Nvidia’s earnings, due later Wednesday, had investors on edge—those numbers have a habit of influencing the chip sector and the broader market. Tech stocks rallied globally, pulling indexes higher.
Broadcom is on deck next week, set to deliver fiscal first-quarter 2026 numbers on March 4, according to its investor relations page. A conference call is slated for 5 p.m. ET. The stock’s been volatile, traders jumping in and out as AI and software news hit.
Reuters said Tuesday that AMD landed a deal to supply up to $60 billion worth of AI chips to Meta Platforms over five years, intensifying questions about which chipmakers will capture the next surge in hyperscaler cash as cloud giants ramp up buying. “Meta is locking in supply, diversifying away from a single vendor,” noted Matt Britzman, senior equity analyst at Hargreaves Lansdown. The report pointed out a roughly 2% drop in Broadcom shares that day; analysts still see Broadcom as a crucial Meta supplier, despite the company’s policy of not naming its hyperscaler clients. Reuters also put potential 2024 capex from Alphabet, Microsoft, Amazon and Meta at a minimum of $630 billion, most of it packing into data centers and AI chip investments. Reuters
UBS stuck with its Buy rating on Broadcom and kept the $475 price target Tuesday, according to Investing.com. The bank pointed to softening software valuations dragging down the stock. UBS also cited a risk that VMware could lose more customers when key three-year contracts roll over in 2026 and 2027. On top of that, the firm noted Broadcom’s semiconductor business is priced at a higher multiple than rivals like Nvidia.
Options traders are bracing for outsized swings going into earnings. Implied volatility, pulled from options pricing, is sitting in the top 10% of its one-year range and signaling daily moves near $13, according to TipRanks’ TheFly.
Broadcom, in a separate move, issued security advisories for VMware Aria Operations and confirmed that patches are now out to fix several vulnerabilities.
The rally isn’t without its risks. Any sign that soaring AI chip sales are squeezing margins has triggered swift backlash from investors. Fabien Yip, market analyst at IG, pointed out that gross margin—the profitability metric everyone’s watching—will take center stage on March 4, especially since Broadcom has already warned of a sequential drop because AI revenues make up a larger slice of the pie.
Nvidia steps up with earnings after the bell on Wednesday, a move that usually stirs chip stocks as a group. Broadcom is on deck with its own numbers March 4. Investors will be tuned in for updates on AI networking demand—and watching for signals on VMware renewals.
