NEW YORK, December 29, 2025, 06:45 ET — Premarket
- Broadcom shares rose 0.6% to $352.13 in premarket trading.
- U.S. index futures edged lower after last week’s record closes, with Nasdaq 100 futures down 0.40%.
- Traders are watching Fed minutes and jobless claims this week, while Broadcom investors remain focused on AI-driven growth and margin pressure.
Broadcom (AVGO.O) shares were up 0.6% at $352.13 in premarket trading on Monday.
The stock moved ahead of the opening bell as U.S. equity futures slipped at the start of the final holiday-shortened trading week of the year, after the S&P 500 and the Dow ended last week at record highs.
Thin volumes around year-end can amplify moves, and investors have been looking for a “Santa Claus rally” — a seasonal pattern in which the S&P 500 rises in the last five trading days of the year and the first two sessions in January, according to Stock Trader’s Almanac. Reuters
At 5:40 a.m. ET, S&P 500 E-mini futures — contracts that track the index — were down 0.22% and Nasdaq 100 E-minis were off 0.40%, Reuters reported.
Most tech and AI-linked stocks edged lower in premarket trading, with Nvidia down 1.1%, Reuters said.
Broadcom has been closely watched as a proxy for AI infrastructure spending, because its chips are used in data centers to connect and accelerate computing workloads.
The company’s last major update came on Dec. 11, when it forecast first-quarter revenue of about $19.1 billion and said AI semiconductor revenue was expected to double year-on-year to $8.2 billion, driven by custom AI accelerators and Ethernet switches.
It also warned that the mix shift toward AI would weigh on profitability. “We expect first-quarter consolidated gross margin to be down approximately 100 basis points sequentially,” Chief Financial Officer Kirsten Spears said on the post-results call. A basis point is one-hundredth of a percentage point. Reuters
Broadcom’s board declared a quarterly cash dividend of $0.65 per share, payable on Dec. 31 to shareholders of record on Dec. 22, a filing showed.
On the broader calendar, minutes from the Federal Reserve’s previous meeting and weekly jobless claims are due this week in an otherwise data-light stretch, Reuters reported.
For Broadcom, the next key test is whether the AI revenue ramp comes with sustained demand from large cloud customers while margins hold up as system sales grow.
Broadcom works with hyperscale cloud providers such as Google and Meta Platforms to design and manufacture custom processors known as ASICs, which can serve as an alternative to Nvidia’s graphics processors for certain AI workloads, Reuters reported.
In corporate filings, the most recent SEC submission listed for Broadcom was its annual report filed on Dec. 18, according to SEC records.
Investors will be watching whether Broadcom’s premarket gains carry into the regular session at 9:30 a.m. ET, with rate expectations and AI spending sentiment still steering trading in large-cap technology.
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