Broadcom Stock Is Trending - What's Going On

Broadcom (NASDAQ:AVGO) stock is trending along with its peers, Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD), as major tech companies rapidly upgrade their chip capabilities to meet soaring global demand for artificial intelligence and strengthen their market positions.

Broadcom leads the Application-Specific Integrated Circuit (ASIC) market by designing and manufacturing custom silicon chips tailored for high-performance computing, networking, and storage.

The company prioritizes speed and efficiency, delivering advanced solutions that power data centers and specialized computing infrastructure.

Also Read: Broadcom’s Trillion-Dollar Run: Analyst Expects ASIC To Take 10%-15% Market Share Backed By AI Compute Demand

Several significant developments have recently reshaped the semiconductor industry’s tightly connected ecosystem, thereby having a bearing on Broadcom’s valuation.

The U.S. temporarily paused tech export restrictions to China to avoid disrupting trade talks and support President Donald Trump’s push for a meeting with Chinese President Xi Jinping, Financial Times reported Monday.

This policy shift, coinciding with Nvidia’s decision to resume H20 AI chip sales to China, reverses a Trump-era ban imposed in April over national security concerns and could benefit semiconductor companies as U.S.-China negotiations resume in Stockholm.

Adding to the momentum, the White House launched “Winning the AI Race: America’s AI Action Plan” last week, which outlines over 90 federal actions to advance U.S. innovation, infrastructure, and AI leadership.

Semiconductor stocks rebounded Wednesday after prior losses linked to delays in the $500 billion Stargate project. The administration plans to fast-track data centers and chip plants permits, expand workforce training, streamline regulations, and require AI contracts to promote fairness and objectivity in large language models.

Reportedly, Nvidia placed an order for an additional 300,000 H20 AI chips from key contract chipmaker Taiwan Semiconductor Manufacturing Co (NYSE:TSM) last week, marking a notable shift in its production plans for the H20 GPU.

AMD is gaining momentum as it rides the rising global AI demand wave and strengthens its chip portfolio. AMD raised the price of its MI350 AI chip by $10,000 to $25,000, signaling growing confidence in its competitiveness and market traction.

Shares of AMD climbed Monday following the news, while HSBC boosted its outlook, stating that the MI350 can now rival Nvidia’s Blackwell B200. The firm raised its 2026 AI chip sales forecast for AMD from $9.6 billion to $15.1 billion, highlighting strong growth potential in the evolving AI chip market.

In February, BofA Securities’ Vivek Arya expressed optimism about Broadcom’s growth, highlighting strong AI compute and networking demand as key drivers. While he expects Nvidia to maintain its dominant 80%+ share of the GPU market, Arya sees room for Broadcom to expand by capturing 10%–15% of the overall accelerator market through ASIC adoption.

However, EU judges are reviewing a legal challenge from CISPE aimed at annulling the European Commission’s approval of Broadcom’s $61 billion VMware deal. CISPE alleges the Commission ignored competitive risks and failed to impose safeguards, enabling Broadcom’s aggressive licensing practices.

Since closing the deal, Broadcom has raised VMware prices and introduced restrictive terms, sparking backlash from smaller European cloud providers. The legal pressure threatens Broadcom’s reputation in Europe, even as it touts VMware-driven revenue gains and AI growth momentum.

Price Action: AVGO stock is up 1.48% at $298.56 at last check Tuesday.

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