Broadcom (NASDAQ: AVGO) slips as Nvidia earnings loom and AI capex debate heats up
NEW YORK, February 22, 2026 - Market closed
AVGO finished Friday down 0.4% at $332.65, trailing gains in the broader U.S. market. Shares traded between $329.58 and $340.11, with roughly 17.6 million shares changing hands, per Yahoo Finance data.
Semis were mixed while major indexes climbed. Nvidia ticked higher into its results week, while networking names lagged.
- Broadcom: -0.40% to $332.65
- Nvidia: +1.0% to $189.82
- Marvell Technology: -0.2% to $79.48
- Arista Networks: -3.2% to $132.79
The near-term catalyst is clear: Nvidia reports Feb. 25, and that call will likely set the tone for AI hardware and suppliers. As one strategist put it to Reuters, expectations are already sky high-making genuine upside harder to deliver.
Broadcom's own update lands March 4 after the close, with a conference call at 2:00 p.m. PT (5:00 p.m. ET). Expect close attention on AI demand trends, product mix, and margins.
The AI spend question investors are wrestling with
AI infrastructure is still the growth narrative, but the math matters. OpenAI struck a deal with Broadcom last year to develop its first in-house AI chip, with rollout slated for the back half of 2026, according to Reuters reporting.
The capex scale is massive. Reuters also reported OpenAI is eyeing roughly $600 billion in total compute spend by 2030 and that Nvidia is nearing a $30 billion investment in OpenAI, underscoring how tightly chipmakers, cloud providers, and AI developers are tied together.
There's a catch: not all AI revenue is created equal. Broadcom flagged margin pressure in December tied to booming custom AI chip sales that carry thinner profits-one reason the stock sold off then. Growth can show up on the top line without the same follow-through on the bottom line.
What to watch next
- Nvidia's guidance and commentary on data-center demand, supply constraints, and order visibility (Nvidia Newsroom).
- Broadcom's March 4 details on custom ASIC rollout cadence, customer mix, and gross margin trajectory.
- Any capex signals from hyperscalers that validate or temper 2026-2030 AI infrastructure assumptions.
- Correlation risk: a strong (or weak) Nvidia print can move AVGO regardless of Broadcom-specific fundamentals.
Practical take for finance and markets pros
- Separate revenue momentum from margin quality. Track mix shift toward custom AI chips and its impact on gross margin.
- Stress-test scenarios around AI capex pacing. If spend slips a quarter or two, who eats the margin hit-chipmakers, cloud partners, or end customers?
- Watch order visibility and lead times. Shortening cycles can compress valuation premiums even if demand stays healthy.
- Use Nvidia's read-through for near-term sentiment, but anchor AVGO views on its March 4 guidance and margin commentary.
If you're building models around AI-driven capex and margin sensitivity, this resource can help: AI Learning Path for CFOs.
Your membership also unlocks:
