NEW YORK, Feb 5, 2026, 16:09 EST — After-hours
- Broadcom climbed roughly 0.8% late Thursday, fluctuating between $306.78 and $326.44 during the session.
- Alphabet signaled capex between $175 billion and $185 billion for 2026; Amazon trailed with roughly $200 billion, maintaining pressure on AI suppliers.
- Investors are zeroing in on Broadcom’s March 4 earnings, seeking clues on AI chip margins and demand.
Broadcom Inc. shares climbed roughly 0.8% to $310.47 in late trading on Thursday, following a volatile session. The stock swung nearly $20, peaking at $326.44 before dropping to a low of $306.78 during the day.
Wall Street reacted to another surge in big tech’s capital spending plans—known as “capex,” money set aside for long-term assets like data centers, servers, and networking equipment. Alphabet expects to shell out between $175 billion and $185 billion in capex for 2026, a sharp jump from $91.45 billion planned for 2025, as it builds out AI infrastructure. CEO Sundar Pichai told analysts that the company sees its AI investments and infrastructure fueling “revenue and growth across the board.” Reuters
That spending has become a major sticking point. “We’re seeing this volatility about whether this investment will translate, ultimately, into results,” said Tom Hainlin, an investment strategist at U.S. Bank Wealth Management. Reuters
Broadcom finds itself at the heart of the debate, thanks to its networking chips powering data centers and a partnership with Google on custom AI hardware like tensor processing units. The stock surged following Alphabet’s forecast, standing out while many chipmakers faced selling pressure.
After the market closed, Amazon dropped another bombshell: it expects roughly $200 billion in capital expenditures for 2026. Shares tumbled nearly 8% in after-hours trading following a first-quarter operating income forecast that came up short of expectations. It’s clear investors remain fixated on profits just as much as spending.
Chip stocks have shown volatility this week, with Broadcom aiming to steady itself on Thursday after tumbling sharply the day before. The stock dropped 3.83% on Wednesday, closing at $308.05, according to MarketWatch data.
But the upside for Broadcom carries a caveat: boosting AI sales doesn’t guarantee fatter margins. Back in December, Broadcom flagged that growing revenue from lower-margin custom AI chips might pressure profits. The stock tumbled over 11% that day. Melius Research analyst Ben Reitzes called that reaction “premature.” Reuters
Broadcom’s fiscal first-quarter earnings drop on March 4 will be closely watched. Investors want fresh details on AI-driven demand, networking order trends, and any margin insights tied to its custom chips.
