New York, Feb 10, 2026, 16:18 EST — After-hours trading session
- Broadcom shares slipped $3.53, roughly 1.0%, to $340.44 in after-hours trading following a volatile session.
- Cisco introduced its Silicon One AI networking chip, designed to compete directly with Broadcom’s Tomahawk series.
- Ahead of the U.S. jobs report on Feb. 11 and Broadcom’s earnings on March 4, investors are reexamining AI capital spending.
Shares of Broadcom Inc. slipped in after-hours trading Tuesday following a fresh competitive move by Cisco in the booming AI-driven data-center networking sector.
This shift is significant as networking increasingly becomes both a chokepoint and a competitive arena for AI systems. Broadcom has long supplied the chips that handle data traffic within massive cloud data centers, where even minor market share changes can impact revenue forecasts.
Traders are dividing once more: some are betting that major cloud companies will continue pouring money into AI hardware, while others are on the lookout for early signs that the spending spree is slowing down.
Broadcom’s shares slipped to $340.44 in after-hours trading, a drop of $3.53 from the previous close. During the session, the stock fluctuated between $339.71 and $349.97.
Cisco Systems unveiled its Silicon One G300 switch chip and a new router on Tuesday, targeting faster data flow in AI-heavy data centers, Reuters reported. The company plans to start selling the chip in the second half of this year. Executive vice president Martin Lund emphasized their focus on “the total end-to-end efficiency of the network.” (Reuters)
UBS’ chief investment office switched the U.S. tech sector to “neutral” on Tuesday, raising concerns that the recent spike in AI infrastructure spending—capex on servers, chips, and networks—might slow down. This could hit segments of the so-called “enabling layer,” including chipmakers like Broadcom. (Investopedia)
Broadcom still has its supporters. UBS kept its Buy rating and slapped on a $475 price target, highlighting what it sees as rising demand for Google’s TPU products — those Tensor Processing Units built specifically for AI tasks. The firm expects unit shipments to keep climbing through 2027. (Investing)
A Zacks research note released Tuesday morning highlighted momentum in AI-related chips alongside Broadcom’s VMware software segment, a combination that’s kept investors eyeing growth and margins instead of solely the semiconductor cycle. (Nasdaq)
The downside risk is becoming more apparent. Should hyperscalers—the largest cloud providers—cut back on spending, or competitors gain ground in networking silicon, investors might rethink how much growth is baked into Broadcom’s stock following its recent volatility.
Macro data might carry some weight in the short term. The U.S. January jobs report is set for release on Feb. 11, followed by the January CPI inflation figures on Feb. 13. These dates were adjusted due to a funding lapse, according to the Labor Department’s statistics agency. (U.S. Bureau of Labor Statistics)
Broadcom’s next major event is its first-quarter fiscal 2026 earnings report, scheduled for March 4. The company will hold a conference call at 5:00 p.m. ET, as noted on its investor relations calendar. (Broadcom)
