NEW YORK, Feb 18, 2026, 10:50 (ET) — Regular session
Shares of Broadcom Inc (AVGO.O) edged up 0.6% to $334.56 during Wednesday morning trading. Earlier in the session, the stock bounced from as low as $326.68 to as high as $336.25. The chipmaker remains caught in the churn that’s hit AI-related stocks lately.
Why does that matter? Investors have been using Broadcom as a bellwether for the custom-chip spending spree among major cloud players, eyeing what it means for profitability. Broadcom’s specialty: custom ASICs — those application-specific integrated circuits tailor-made for single tasks — plus the networking silicon that links up AI servers. In December, management flagged that gross margins might slip as the AI part of the business ramps, though they highlighted a hefty $73 billion backlog.
Macro factors are back in play. Investors are watching for the Federal Reserve’s January meeting minutes, expected at 2 p.m. EST. Fed Chair Jerome Powell, after that meeting, said “upside risks to inflation” and “downside risks to employment” had “diminished a bit”—language that has the potential to shift rate expectations and ripple through pricey tech shares. Reuters
Nvidia announced a multiyear agreement to provide Meta Platforms with millions of AI chips—this covers both the current Blackwell line and the next-gen Rubin processors, plus Grace and Vera CPUs. Meta isn’t just buying hardware; it’s developing its own AI chips, too, and is reportedly in discussions with Google regarding access to Tensor Processing Units, or TPUs, according to Reuters.
A new analyst note stirred things up again. Citigroup’s Atif Malik lowered his price target on Broadcom to $458 from $480 but stuck with his Buy rating. He argued that concerns around gross margins, TPU competition and software sales risks are “mostly priced into” the stock. TipRanks
Broadcom’s VMware software business still stands out as a separate point for investors. According to CloudBolt, a January poll of 302 large North American companies showed 86% are cutting back on VMware use, and 88% worry about price hikes ahead. “The panic phase is over. Now it’s execution,” CloudBolt CEO Rod Squires said. GlobeNewswire
Selective buying popped up, too. Cathie Wood’s ARK funds picked up 24,205 Broadcom shares—roughly $7.87 million worth—during Tuesday’s session, a daily trades recap from Investing.com showed.
Broadcom pushed higher while U.S. indexes ticked up, tech stocks regaining some ground. Traders eyed upcoming Fed minutes and inflation numbers due this week. Nvidia rallied on news of its Meta supply agreement, which gave a boost to several semiconductor names.
The risks are straightforward. Should customers push further toward Nvidia-focused setups, or if Broadcom’s margins shrink beyond what investors have priced in, shares could stumble fast. VMware renewal rates and how quickly clients migrate still hang in the balance, adding another layer of doubt.
Broadcom is set to report quarterly results after the bell on March 4, with its conference call kicking off at 5 p.m. ET. Market watchers want clarity on AI order trends, margins, and any signs that VMware churn might be stabilizing.
