New York, Feb 26, 2026, 16:42 ET — After-hours.
- Broadcom (AVGO) closed down 3.19% and slipped another ~1% in after-hours trade
- The company said it has started shipping a 2-nanometer custom compute chip for Fujitsu using its 3.5D packaging platform
- Traders now pivot to Broadcom’s March 4 earnings for a fresh read on AI-chip demand and margins
Broadcom shares closed down 3.2% at $321.70 on Thursday and fell a further 1% in after-hours trade to $318.50. The stock ranged from $307.93 to $326.58, a wide swing for a megacap on a day when chip names took heat. 1
The move matters because Broadcom sits in the middle of two trades that have started to collide: the market’s rush into AI hardware and a fresh bout of doubt over how fast those returns land. With Nvidia’s results rippling across the sector, investors are also tightening up ahead of Broadcom’s own report next week.
Broadcom is pushing hard on advanced chip packaging — the unglamorous but critical work of wiring silicon together so data can move faster without cooking the system. That pitch is aimed squarely at giant cloud buyers building ever-larger AI clusters, where power and latency have become the binding constraints.
Earlier on Thursday, Broadcom said it has begun shipping what it called the industry’s first 2-nanometer custom compute system-on-chip, or SoC, built on its 3.5D “Face-to-Face” packaging platform. “We’re proud to deliver the first 3.5D custom compute SoC for Fujitsu,” said Frank Ostojic, senior vice president and general manager of Broadcom’s ASIC Products Division, adding that broader-customer shipments are expected from the second half of 2026. 2
In a separate update, the chip designer set a new sales target around stacked chips, saying it expects to sell at least 1 million chips by 2027 based on its 3D stacked design technology. Harish Bharadwaj, vice president of product marketing, said the approach bonds two chips together to speed the flow of data while cutting power use, adding: “Now, pretty much all of our customers are adopting this technology.” Broadcom said Fujitsu is testing engineering samples and plans production later this year, while Broadcom projected its AI chip revenue would double year-on-year to $8.2 billion in its first fiscal quarter. 3
Still, Broadcom’s own announcements did not insulate the stock from the broader tone. Nvidia shares fell on Thursday as investors looked past strong earnings and focused on spending and competitive pressures, dragging other chip stocks including Broadcom and Advanced Micro Devices lower, Reuters reported. “The competitive picture is also shifting,” said Jacob Bourne, an analyst at eMarketer. 4
U.S. stocks ended lower, with the tech-heavy Nasdaq taking the brunt as semiconductors slid; the Philadelphia SE Semiconductor index looked set to snap a 10-week run of weekly gains. “It feels like an Nvidia hangover that’s specific to the AI space,” said Michael Green, chief strategist at Simplify Asset Management. 5
The risk for Broadcom holders is that the market stays in “show me” mode on AI spending. Packaging wins and ambitious unit targets can take time to turn into steady revenue, and chip stocks can re-rate quickly when investors decide the easy part of the AI trade is done.
Next up is Broadcom’s fiscal first-quarter report on March 4 after the close, followed by a management conference call scheduled for 5:00 p.m. ET. Traders will be listening for updates on AI-related chip demand and any color on the ramp in advanced packaging, alongside comments on the company’s infrastructure software business. 6
