New York, Feb 26, 2026, 16:42 ET — After-hours trading.
- Broadcom (AVGO) dropped 3.19% by the bell and then lost close to another 1% in after-hours trading
- The company has begun shipping a 2-nanometer custom compute chip to Fujitsu, leveraging its 3.5D packaging platform.
- Next up: traders are zeroing in on Broadcom’s March 4 earnings, hunting for clues on AI-chip demand and margin trends.
Broadcom ended Thursday off 3.2% at $321.70, then slipped another 1% after the bell to $318.50. Shares swung between $307.93 and $326.58—a big move for a megacap, especially as chip stocks faced pressure. 1
Broadcom is caught between two converging trends: surging demand for AI hardware and renewed skepticism over the speed of payback. Nvidia’s results have thrown a spotlight on the entire sector, and with Broadcom’s own earnings on deck next week, investors are bracing.
Broadcom is leaning into advanced chip packaging, the behind-the-scenes task of connecting silicon components to shuttle data faster—without overheating the whole setup. The company’s message is targeting the big cloud players ramping up huge AI clusters, where limits on power and lag now call the shots.
Broadcom announced Thursday it’s started shipping what it touts as the industry’s first 2-nanometer custom compute SoC, using 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. The company expects to begin broader-customer shipments in the second half of 2026. 2
Separately, the chip designer rolled out a fresh sales goal tied to its 3D stacked chip technology, projecting at least 1 million units sold by 2027. Harish Bharadwaj, who heads product marketing, explained that the method connects two chips to boost data speeds and trim energy consumption. “Now, pretty much all of our customers are adopting this technology,” he said. Broadcom noted that Fujitsu is currently evaluating engineering samples and looking to start production before the year ends. For its first fiscal quarter, Broadcom is targeting AI chip revenue to hit $8.2 billion, a doubling from a year ago. 3
Even with Broadcom’s latest updates, the stock couldn’t escape pressure from the wider market mood. Nvidia dropped Thursday—investors shrugged off its robust earnings, zeroing in on costs and rising competition instead, according to Reuters. That slump hit other chipmakers, including Broadcom and Advanced Micro Devices. “The competitive picture is also shifting,” said Jacob Bourne, analyst at eMarketer. 4
U.S. equities finished in the red. The Nasdaq, weighed down by a pullback in semiconductor names, saw the sharpest losses—the Philadelphia SE Semiconductor index was on track to break its 10-week winning streak. “It feels like an Nvidia hangover that’s specific to the AI space,” said Michael Green, chief strategist at Simplify Asset Management. 5
Broadcom holders face a market still firmly in “show me” mode on AI outlays. Even if the company touts new packaging deals and bold shipment goals, actual revenue growth isn’t instant. Chip stocks have a habit of re-rating fast when investors sense the straightforward phase of the AI trade is over.
Broadcom is set to deliver its fiscal first-quarter results after the bell on March 4, with the management call locked in for 5:00 p.m. ET. Focus will be on AI chip demand, any fresh details around advanced packaging trends, and what executives have to say about the infrastructure software segment. 6
