NEW YORK, Feb 13, 2026, 10:39 EST — Regular session
- Broadcom shares down 0.9% at $328.36 in morning trade
- D.A. Davidson starts coverage at Neutral with a $335 target, warning on custom AI chip economics
- Investors weigh softer U.S. inflation data and the next set of company updates due March 4
Broadcom Inc shares (AVGO.O) slipped 0.9% to $328.36 on Friday morning, pulling back after an early pop that took the stock as high as $334.16. The stock later touched $326.28.
The move matters because Broadcom sits in the middle of the artificial intelligence (AI) buildout — and investors are still arguing over who keeps the profits as the biggest cloud customers spend heavily, then start to design more of the hardware themselves. Rate bets add another layer: long-duration tech names can swing on every inflation print.
D.A. Davidson kicked off coverage of Broadcom, AMD, Intel and Taiwan Semiconductor in a note to clients, with only TSMC getting a buy. On Broadcom, analyst Gil Luria wrote the company was “sitting on a shrinking iceberg” as hyperscalers — the biggest cloud operators — lean toward customized accelerators, and warned customers could internalize more of the silicon stack, “pressuring supplier economics.” He started Broadcom at Neutral with a $335 price target. (Investing)
A separate readthrough for the AI supply chain came from SK hynix, which said SK Group Chairman Chey Tae-won met Broadcom CEO Hock Tan on Feb. 6 at Broadcom’s headquarters in San Jose and discussed expanding cooperation around HBM, or high-bandwidth memory used in AI accelerators. SK hynix said the companies discussed integrating memory earlier in the design stage of Broadcom’s next-generation AI chips and described a “one-team” approach. (SK hynix Newsroom –)
Macro data kept traders on their toes. The Labor Department said the consumer price index rose 0.2% in January and climbed 2.4% year-on-year; core CPI — which strips out food and energy — rose 0.3% on the month and was up 2.5% from a year earlier. The next CPI report, for February, is scheduled for March 11. (Bureau of Labor Statistics)
A softer headline number did not clear the deck. Reuters reported underlying inflation firmed in January, and the Federal Reserve last month left its benchmark rate in the 3.50%-3.75% range, a backdrop that can keep pressure on richly valued chip and software names. (Reuters)
Wall Street’s main indexes were muted at the open as markets digested the inflation data. The Dow dipped 0.03% at the bell, the S&P 500 was up 0.02% and the Nasdaq fell 0.16%, Reuters reported. (Reuters)
Broadcom was coming off a sharp down day. The stock fell 3.38% on Thursday to close at $331.17, after opening at $343.83 and sliding as low as $329.56, according to daily pricing data. (StockAnalysis)
Chip stocks have not moved in lockstep. Applied Materials surged after it forecast stronger-than-expected second-quarter sales and profit, and CEO Gary Dickerson pointed to demand “fueled by the acceleration of industry investments in AI computing.” (Reuters)
Broadcom’s bull case leans on custom AI chips and networking silicon that sit inside data centers, along with infrastructure software through VMware. The bear case is simpler: a few giant customers can change designs, change suppliers, or slow spending, and the math turns fast.
But Friday’s push-pull is also about timing. If cloud customers keep shifting toward in-house accelerators and squeeze suppliers on pricing, Broadcom’s AI growth can look less scarce — and less deserving of a premium — even if overall demand stays strong.
The next hard catalyst is Broadcom’s fiscal first-quarter results and business outlook on March 4, after the market close, with a management call scheduled for 5 p.m. ET. (Investingnews)
