NEW YORK, January 1, 2026, 09:33 ET — Market closed
- Broadcom (AVGO) last fell 1.1% on Wednesday to $346.10 as U.S. stocks ended 2025 lower in thin trading.
- Chip shares lagged with the sector, with the iShares Semiconductor ETF down 1.2% and Nvidia down 0.5% in the same session.
- Investors are turning to January catalysts, including the U.S. jobs report on January 9 and the Fed’s January 27–28 meeting.
Broadcom Inc (AVGO) shares fell 1.1% in the final U.S. session of 2025, closing at $346.10 on Wednesday. U.S. markets are closed on Thursday for New Year’s Day.
The stock’s drop tracked a broader year-end pullback as investors locked in gains in light trading after a strong 2025 for major indexes. The S&P 500 ended Wednesday down 0.74%, with all three major indexes closing the year with double-digit gains, Reuters reported.
That backdrop matters for Broadcom because the chipmaker sits near the center of the AI infrastructure trade that helped power 2025’s rally. Reuters reported on December 30 that OpenAI has partnered with Broadcom to produce its first in-house AI processors, underscoring the pace of big-ticket spending tied to generative AI.
“I do not expect that the last few days will have so much bearing on the performance of the next year,” said Giuseppe Sette, co-founder and president of Reflexivity, pointing to profit-taking when liquidity was low. Reuters
Broadcom’s move was broadly in line with the semiconductor group on Wednesday. The iShares Semiconductor ETF (SOXX) fell 1.2%, while Nvidia (NVDA) and AMD (AMD) each slipped about 0.5%.
Broadcom has drawn investor attention for its custom AI processors — chips built for specific customers’ workloads — and networking silicon used in data centers, alongside its infrastructure software business. Traders have been weighing how quickly AI-related revenue grows against profitability metrics such as gross margin, the share of sales left after direct costs.
In its most recent outlook, Broadcom forecast first-quarter fiscal 2026 revenue of about $19.1 billion and said adjusted EBITDA margin would be about 67%, according to a company statement.
The company also lifted its quarterly dividend to $0.65 per share for fiscal 2026, and said the dividend would be payable on December 31 to shareholders of record on December 22.
Before the next session on Friday, January 2, traders will watch whether the AI-heavy chip group stabilizes after the late-December slide that left U.S. stocks short of a typical “Santa Claus rally,” a seasonal year-end lift. Reuters
Macro catalysts are close. The U.S. Employment Situation report for December 2025 is scheduled for January 9, and the Federal Reserve’s next policy meeting is set for January 27–28, according to the BLS and the Fed’s calendar.
For Broadcom, the next major company checkpoint is its next quarterly report, listed for March 4 on Yahoo Finance’s earnings calendar. Investors are likely to focus on AI-related demand signals and profitability commentary, particularly any updates tied to custom AI chip programs such as the OpenAI partnership Reuters highlighted this week.
On the chart, Wednesday’s range left a near-term band for traders. Broadcom traded as low as $345.36 and as high as $350.94; a break below that low could put the late-December support back in play, while reclaiming the $351 area would suggest year-end selling pressure is easing.
