Stocks Fall as Middle East War Escalates, S&P 500 Drops Over 0.5%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 05 2026
0mins
Should l Buy AVGO?
Stocks fell as markets continue to be rocked by the war in the Middle East, which entered its sixth day and has boosted oil and gas prices. Benchmark U.S. oil prices hit $81 per barrel and bonds slid as headlines continued to depict war escalating in Iran and the Middle East. The S&P 500 lost over 0.5% and the Dow fell almost 2% as Bloomberg also reported that U.S. officials have written draft regulations that would restrict AI chip shipments to anywhere in the world without American approval.Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:Broadcomrallied after the company said it expects artificial intelligence chip sales toin 2027OpenAI toppedas of end of last month, The Information reportsKrogerreported, but gave a FY26 EPS outlook range that missed consensus at the midpoint24 states haveto block his latest round of tariffsNetflixthe acquisition of InterPositive, a filmmaking technology company founded by Ben Affleck2. WALL STREET CALLS:Meta Platformsto Neutral from Buy at AreteScotiabankMongoDBto Outperform following its post-earnings selloffPenn Entertainmentto Buy at BenchmarkBernsteinCoreWeaveat Underperform on hyperscaler competition riskJPMorgan and WedbushStubHubto Neutral after its earnings miss and guidance reset3. AROUND THE WEB:White House officials have drafted regulations that would require companies to seek U.S. permission for virtually all exports of AI accelerators from companies like Nvidiaand AMD, Bloomberg saysAlibabasaid it would set up a new task force to accelerate foundation model development, following the resignation of its Qwen AI division head Lin Junyang, Reuters reportsOracleplans thousands of job cuts, Bloomberg reportsNvidiahas stopped production of its second-most advanced artificial intelligence chips intended for the Chinese market, FT reportsSonyno longer plans to release its big single-player PlayStation 5 games on PC, a major strategy shift that sees it returning to console exclusivity, Bloomberg says4. MOVERS:Tango Therapeuticsgained after reportingand entering a clinical collaboration agreement with ErascaPalladyne AIadvanced afterfor FY26StubHubQ4 GMS and revenue about 7% below consensus estimates, while the FY26 outlook for GMS and EBITDA came in "well below" estimatesGrocery Outletfell after reportingand providing an update on its restructuring planPepGendeclined after announcing the FDA placed aon a Phase 2 trial of PGN-EDODM15. EARNINGS/GUIDANCE:BJ's Wholesalereported, with EPS and revenue beating consensusJD.comreported, with CEO Sandy Xu "pleased to close out 2026 with fourth quarter results in line with expectations"American Eaglereported what Telsey Advisory said wereVictoria's Secretreported, with CEO Hillary Super commenting, "We delivered an exceptional fourth quarter and a standout year"Cienareportedand provided guidance for Q2INDEXES:The Dow fell 784.67, or 1.61%, to 47,954.74, the Nasdaq lost 58.50, or 0.26%, to 22,748.99, and the S&P 500 declined 38.79, or 0.56%, to 6,830.71.
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Analyst Views on AVGO
Wall Street analysts forecast AVGO stock price to rise
30 Analyst Rating
29 Buy
1 Hold
0 Sell
Strong Buy
Current: 293.410
Low
370.00
Averages
457.75
High
525.00
Current: 293.410
Low
370.00
Averages
457.75
High
525.00
About AVGO
Broadcom Inc. is a global technology firm that designs, develops, and supplies a range of semiconductors, enterprise software and security solutions. The Company operates through two segments: semiconductor solutions and infrastructure software. Its semiconductor solutions segment includes all of its product lines and intellectual property (IP) licensing. It provides a variety of radio frequency semiconductor devices, wireless connectivity solutions, custom touch controllers, and inductive charging solutions for mobile applications. Its infrastructure software segment includes its private and hybrid cloud, application development and delivery, software-defined edge, application networking and security, mainframe, distributed and cybersecurity solutions, and its FC SAN business. It provides a portfolio of software solutions that enable customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Broadcom's AI Semiconductor Revenue Soars 106%
- Significant Revenue Growth: Broadcom's revenue surged 29% year-over-year to $19.3 billion in Q1, with GAAP net income soaring 34% to approximately $7.3 billion, reflecting strong performance and rising demand in the AI sector.
- AI Semiconductor Partnerships: The company has secured multi-year partnerships with six major customers to co-develop custom AI chips, with expectations that AI chip revenue will exceed $100 billion by 2027, further solidifying its market position.
- AI Networking Revenue Surge: AI networking revenue increased by 60% year-over-year in Q1, accounting for one-third of total AI revenue, and is projected to make up nearly 40% in Q2, highlighting its importance as a growth engine.
- Market Valuation Potential: Despite a current price-to-sales ratio of 22, Broadcom's market cap could approach $3 trillion in the coming years, driven by strong revenue visibility and its deep involvement in AI infrastructure, suggesting that the market may still underestimate its potential.
See More
Broadcom Poised for $3 Trillion Valuation Amid AI Surge
- Significant Revenue Growth: Broadcom's Q1 revenue increased by 29% year-over-year to $19.3 billion, with GAAP net income soaring 34% to $7.3 billion, indicating strong performance and rapid market demand in the AI sector.
- Surge in AI Chip Sales: AI semiconductor revenue skyrocketed by 106% to $8.4 billion, with management projecting AI chip revenue to exceed $100 billion by 2027, highlighting Broadcom's critical role and future potential in AI infrastructure.
- Strategic Partnerships: Broadcom has entered multi-year partnerships with six strategic customers to co-develop custom AI accelerators, securing supply chains through 2028, which further solidifies its dominance in AI infrastructure.
- Market Valuation Outlook: Analysts expect Broadcom's revenue to reach $104.7 billion in fiscal 2026 and $155.6 billion in 2027, and considering its strong revenue visibility, the stock is poised to approach a $3 trillion market cap in the coming years.
See More
AMD and Broadcom Poised for Data Center Growth
- Data Center Opportunity: AMD is expected to highlight its data center CPU potential in the upcoming earnings report, as the rise of agentic AI drives increased demand, likely boosting company performance and stock price.
- Strong Market Demand: AMD's CPUs are reportedly supply-constrained with rising prices, indicating robust market demand that will provide a favorable outlook for the company's profitability.
- Broadcom's AI Growth: Broadcom projects $100 billion in sales from custom AI chips by fiscal 2027, showcasing its significant growth potential in AI infrastructure, further driving company revenue.
- Networking Component Demand: As AI chip clusters expand, the demand for Broadcom's networking products, particularly Ethernet switches, is set to rise, providing an additional revenue stream for the company.
See More
Nvidia Invests $2 Billion in Marvell to Boost AI Demand
- Strategic Investment: Nvidia's announcement of a $2 billion investment in Marvell aims to enhance the semiconductor sector's capacity to meet surging AI demand, effectively integrating Marvell into Nvidia's AI ecosystem and facilitating customer infrastructure development.
- Market Reaction: Following the news, Marvell's shares surged over 9%, indicating strong market optimism regarding the investment, while Nvidia's stock rose by 1.5%, reflecting investor confidence in the future collaboration between the two companies.
- Technological Collaboration: The partnership will focus on developing silicon photonics technology, underscoring the critical role of high-speed connectivity and accelerated infrastructure in scaling AI, which highlights the depth of cooperation in technological innovation between the firms.
- Growth Outlook: Marvell anticipates accelerated revenue growth through 2027, with CEO Matt Murphy noting that the expanded partnership with Nvidia will drive demand for efficient connectivity and infrastructure, showcasing the robust growth potential in the AI market.
See More
Investment Opportunities in AMD and Broadcom Ahead of Earnings
- AMD Data Center Opportunity: AMD's upcoming earnings report is expected to highlight its data center CPU opportunity, with surging demand for CPUs driven by the rise of agentic AI, likely leading to price increases and strengthening the company's market position.
- GPU Partnerships: AMD has established partnerships with two major GPU companies, with initial deployments expected in the second half of 2026, which will provide robust support for future revenue growth and may lead to strong earnings guidance in the upcoming report.
- Broadcom AI Infrastructure Growth: Broadcom faces a significant growth opportunity in AI infrastructure, projecting $100 billion in sales from custom AI chips by fiscal 2027, showcasing its strong market potential.
- Surge in Networking Component Demand: As AI chip sales increase, Broadcom's networking business is set to experience rapid growth, particularly in demand for connectivity components like Ethernet switches, further driving overall performance improvements for the company.
See More
Microsoft and Broadcom: AI Investment Opportunities
- Microsoft Stock Decline: Microsoft shares have fallen over 30% from their all-time highs, despite Azure's impressive 39% year-over-year revenue growth in Q2 FY 2026, contributing to an overall revenue increase of 17%, indicating strong long-term prospects.
- Market Misinterpretation Impact: Although Microsoft's business remains robust, concerns over a general sell-off in software companies have led to stock price declines, as investors worry that AI agents might replace software, overlooking Microsoft's business-centric model.
- Broadcom's Growth Potential: Broadcom anticipates massive growth over the next two years, with its custom AI chip segment seeing a 106% year-over-year revenue increase to $8.4 billion in Q1 FY 2026, and projected to generate over $100 billion in revenue by next year.
- AI Market Share Competition: Despite Broadcom's stock being down from its all-time high, the rapid growth in the AI sector and the potential for its products to capture market share make this an ideal time to buy Broadcom stock.
See More
Broadcom's AI Semiconductor Revenue Soars 106%
- Significant Revenue Growth: Broadcom's revenue surged 29% year-over-year to $19.3 billion in Q1, with GAAP net income soaring 34% to approximately $7.3 billion, reflecting strong performance and rising demand in the AI sector.
- AI Semiconductor Partnerships: The company has secured multi-year partnerships with six major customers to co-develop custom AI chips, with expectations that AI chip revenue will exceed $100 billion by 2027, further solidifying its market position.
- AI Networking Revenue Surge: AI networking revenue increased by 60% year-over-year in Q1, accounting for one-third of total AI revenue, and is projected to make up nearly 40% in Q2, highlighting its importance as a growth engine.
- Market Valuation Potential: Despite a current price-to-sales ratio of 22, Broadcom's market cap could approach $3 trillion in the coming years, driven by strong revenue visibility and its deep involvement in AI infrastructure, suggesting that the market may still underestimate its potential.
See More
Broadcom Poised for $3 Trillion Valuation Amid AI Surge
- Significant Revenue Growth: Broadcom's Q1 revenue increased by 29% year-over-year to $19.3 billion, with GAAP net income soaring 34% to $7.3 billion, indicating strong performance and rapid market demand in the AI sector.
- Surge in AI Chip Sales: AI semiconductor revenue skyrocketed by 106% to $8.4 billion, with management projecting AI chip revenue to exceed $100 billion by 2027, highlighting Broadcom's critical role and future potential in AI infrastructure.
- Strategic Partnerships: Broadcom has entered multi-year partnerships with six strategic customers to co-develop custom AI accelerators, securing supply chains through 2028, which further solidifies its dominance in AI infrastructure.
- Market Valuation Outlook: Analysts expect Broadcom's revenue to reach $104.7 billion in fiscal 2026 and $155.6 billion in 2027, and considering its strong revenue visibility, the stock is poised to approach a $3 trillion market cap in the coming years.
See More
AMD and Broadcom Poised for Data Center Growth
- Data Center Opportunity: AMD is expected to highlight its data center CPU potential in the upcoming earnings report, as the rise of agentic AI drives increased demand, likely boosting company performance and stock price.
- Strong Market Demand: AMD's CPUs are reportedly supply-constrained with rising prices, indicating robust market demand that will provide a favorable outlook for the company's profitability.
- Broadcom's AI Growth: Broadcom projects $100 billion in sales from custom AI chips by fiscal 2027, showcasing its significant growth potential in AI infrastructure, further driving company revenue.
- Networking Component Demand: As AI chip clusters expand, the demand for Broadcom's networking products, particularly Ethernet switches, is set to rise, providing an additional revenue stream for the company.
See More
Nvidia Invests $2 Billion in Marvell to Boost AI Demand
- Strategic Investment: Nvidia's announcement of a $2 billion investment in Marvell aims to enhance the semiconductor sector's capacity to meet surging AI demand, effectively integrating Marvell into Nvidia's AI ecosystem and facilitating customer infrastructure development.
- Market Reaction: Following the news, Marvell's shares surged over 9%, indicating strong market optimism regarding the investment, while Nvidia's stock rose by 1.5%, reflecting investor confidence in the future collaboration between the two companies.
- Technological Collaboration: The partnership will focus on developing silicon photonics technology, underscoring the critical role of high-speed connectivity and accelerated infrastructure in scaling AI, which highlights the depth of cooperation in technological innovation between the firms.
- Growth Outlook: Marvell anticipates accelerated revenue growth through 2027, with CEO Matt Murphy noting that the expanded partnership with Nvidia will drive demand for efficient connectivity and infrastructure, showcasing the robust growth potential in the AI market.
See More
Investment Opportunities in AMD and Broadcom Ahead of Earnings
- AMD Data Center Opportunity: AMD's upcoming earnings report is expected to highlight its data center CPU opportunity, with surging demand for CPUs driven by the rise of agentic AI, likely leading to price increases and strengthening the company's market position.
- GPU Partnerships: AMD has established partnerships with two major GPU companies, with initial deployments expected in the second half of 2026, which will provide robust support for future revenue growth and may lead to strong earnings guidance in the upcoming report.
- Broadcom AI Infrastructure Growth: Broadcom faces a significant growth opportunity in AI infrastructure, projecting $100 billion in sales from custom AI chips by fiscal 2027, showcasing its strong market potential.
- Surge in Networking Component Demand: As AI chip sales increase, Broadcom's networking business is set to experience rapid growth, particularly in demand for connectivity components like Ethernet switches, further driving overall performance improvements for the company.
See More
Microsoft and Broadcom: AI Investment Opportunities
- Microsoft Stock Decline: Microsoft shares have fallen over 30% from their all-time highs, despite Azure's impressive 39% year-over-year revenue growth in Q2 FY 2026, contributing to an overall revenue increase of 17%, indicating strong long-term prospects.
- Market Misinterpretation Impact: Although Microsoft's business remains robust, concerns over a general sell-off in software companies have led to stock price declines, as investors worry that AI agents might replace software, overlooking Microsoft's business-centric model.
- Broadcom's Growth Potential: Broadcom anticipates massive growth over the next two years, with its custom AI chip segment seeing a 106% year-over-year revenue increase to $8.4 billion in Q1 FY 2026, and projected to generate over $100 billion in revenue by next year.
- AI Market Share Competition: Despite Broadcom's stock being down from its all-time high, the rapid growth in the AI sector and the potential for its products to capture market share make this an ideal time to buy Broadcom stock.
See More
