Tech Stocks Start 2026 Strong with Nvidia and Alphabet Up Over 1%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 02 2026
0mins
Should l Buy AVGO?
Source: CNBC
- Tech Stock Performance: On the first trading day of 2026, tech stocks continued to lead, with Nvidia and Alphabet both rising over 1%, indicating sustained investor confidence in the tech sector despite ongoing concerns about high valuations.
- Semiconductor Sector Recovery: The semiconductor sector saw a collective rise, with Broadcom gaining over 1.5%, reflecting optimistic sentiment about the industry's recovery, which could drive profitability for related companies.
- AI Investment Trends: While AI stocks performed strongly in 2025, with Palantir up 135% and Oracle up 17%, increased investor caution regarding high valuations may prompt a shift towards more cyclical stocks, impacting future investment strategies.
- Market Expectations: According to the 2026 CNBC Market Strategist Survey, Wall Street anticipates the S&P 500 will rise by approximately 11% in 2026, a respectable increase that, while lower than previous years, still indicates healthy market development potential.
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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: 333.510
Low
370.00
Averages
457.75
High
525.00
Current: 333.510
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 Chip Demand Soars, Stock Performance Strong
- Surging Market Demand: Broadcom has seen skyrocketing demand for its data center chips and networking equipment, with its stock soaring 49% last year, significantly outperforming rival Nvidia's 38% gain, highlighting its strong position in the AI market.
- Robust Customer Orders: Major AI companies like Google and Anthropic have placed orders totaling $21 billion for Broadcom's Ironwood chips, indicating the increasing importance of its hardware in AI development and further solidifying its market share.
- Accelerating Revenue Growth: Broadcom anticipates total revenue of approximately $19.1 billion for the first quarter of fiscal 2026, representing a 28% year-over-year increase, with AI semiconductor revenue expected to reach $8.2 billion, showcasing strong growth in AI hardware sales.
- Valuation and Investment Advice: Despite Broadcom's high P/E ratio of 68, which is more than double the Nasdaq-100's 32, investors should note its projected 50% annual revenue growth, suggesting a long-term hold strategy for better returns.
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Valley Wealth Managers Sells Sonoco Shares Worth $19.9 Million
- Share Sale Details: Valley Wealth Managers, Inc. disclosed in its February 4, 2026 SEC filing the sale of 479,832 shares of Sonoco Products Company, with an estimated transaction value of $19.9 million, indicating a significant $20.7 million decline in the fund's position due to market fluctuations during the quarter.
- Position Reduction: Following this transaction, Valley Wealth's stake in Sonoco was reduced to just 475 shares, valued at $20,729 at the end of the quarter, suggesting a waning confidence in Sonoco's future performance, which may impact its investment strategy moving forward.
- Market Performance Analysis: As of February 3, 2026, Sonoco's stock was priced at $49.01, reflecting a 7.9% increase over the past year, yet underperforming the S&P 500 by 9 percentage points, indicating sluggish growth that may prompt investors to reassess its investment value.
- Investor Strategy Shift: In conjunction with the sale of Sonoco shares, Valley Wealth increased its investments in the Vanguard Russell 1000 Growth ETF and Apple, reflecting a strategic shift from underperforming traditional sectors to higher-growth tech stocks, aiming to mitigate risk and capitalize on market opportunities through diversification.
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Valley Wealth Reduces Sonoco Stake by Nearly 480K Shares
- Stake Reduction: Valley Wealth Managers disclosed in its February 4, 2026 SEC filing that it sold 479,832 shares of Sonoco Products Company, with the transaction valued at $19.9 million, reflecting a cautious outlook on the company's future growth potential.
- Asset Value Decline: The fund's position value dropped by $20.7 million quarter-over-quarter due to both the share sale and stock price fluctuations, indicating poor market performance and impacting investor confidence in Sonoco.
- Industry Context: Despite Sonoco's revenue surge of 42% in 2025, its historical low growth trajectory has led investors to be wary of its future prospects, prompting a shift of funds towards more promising tech stocks.
- Investment Strategy Shift: While reducing its stake in Sonoco, Valley Wealth increased investments in other top positions like the Vanguard Russell 1000 Growth ETF and Apple, indicating a strategy to seek broader growth opportunities in the current bull market.
See More
Goldman Sachs Optimistic on Credo Technology's Future
- Growing Market Demand: Analyst James Schneider from Goldman Sachs highlights a surge in demand for high-speed, short-range connectivity in AI data centers, which is expected to further drive growth for Credo Technology Group, showcasing the company's strong market potential.
- Buy Rating and Price Target: Goldman Sachs initiates coverage on Credo with a buy rating and sets a 12-month price target of $165, indicating a 29% upside from Wednesday's close, reflecting the analyst's confidence in the company's future performance.
- Significant Technological Advantage: Credo's Active Electrical Cables (AECs) technology offers low-cost, high-bandwidth, and highly reliable connectivity solutions, and Schneider believes this technology will remain mainstream for at least the next five years, further solidifying the company's market position.
- Diversification Strategy: Schneider commends Credo's diversification efforts into optical solutions, which he believes will support long-term growth, while also appreciating the company's carefully managed guidance and investor messaging.
See More
Nvidia Shares Decline, Yet OpenAI's Fundraising May Bring Benefits.
Nvidia Stock Performance: Nvidia's stock experienced a decline early Thursday despite positive analyst predictions regarding its upcoming earnings.
OpenAI Fundraising News: The drop in Nvidia's stock occurred alongside reports of significant fundraising plans from OpenAI, the developer of ChatGPT.
See More
China's Rapid Progress in Artificial Intelligence Development
- Intensifying Tech Competition: OpenAI's Sam Altman noted that China's progress in artificial intelligence is 'remarkable,' particularly in the race against the U.S. to develop artificial general intelligence (AGI), showcasing rapid advancements by Chinese tech companies across various fields.
- Proximity to Frontier: Altman emphasized that while Chinese tech firms are nearing the technological frontier in some areas, they lag in others, indicating a potentially uneven development landscape that could impact the global tech competition framework.
- Societal Application Rollout: As China accelerates the deployment of AI technologies across society, Altman's remarks reflect an acknowledgment of China's increasingly significant role in the global tech ecosystem, which may attract more investment and collaboration opportunities.
- Ongoing Monitoring of Developments: This is a breaking news story, and Altman's comments may trigger market interest in the future development of Chinese tech companies, prompting investors to closely monitor subsequent developments and policy changes.
See More
Broadcom's AI Chip Demand Soars, Stock Performance Strong
- Surging Market Demand: Broadcom has seen skyrocketing demand for its data center chips and networking equipment, with its stock soaring 49% last year, significantly outperforming rival Nvidia's 38% gain, highlighting its strong position in the AI market.
- Robust Customer Orders: Major AI companies like Google and Anthropic have placed orders totaling $21 billion for Broadcom's Ironwood chips, indicating the increasing importance of its hardware in AI development and further solidifying its market share.
- Accelerating Revenue Growth: Broadcom anticipates total revenue of approximately $19.1 billion for the first quarter of fiscal 2026, representing a 28% year-over-year increase, with AI semiconductor revenue expected to reach $8.2 billion, showcasing strong growth in AI hardware sales.
- Valuation and Investment Advice: Despite Broadcom's high P/E ratio of 68, which is more than double the Nasdaq-100's 32, investors should note its projected 50% annual revenue growth, suggesting a long-term hold strategy for better returns.
See More
Valley Wealth Managers Sells Sonoco Shares Worth $19.9 Million
- Share Sale Details: Valley Wealth Managers, Inc. disclosed in its February 4, 2026 SEC filing the sale of 479,832 shares of Sonoco Products Company, with an estimated transaction value of $19.9 million, indicating a significant $20.7 million decline in the fund's position due to market fluctuations during the quarter.
- Position Reduction: Following this transaction, Valley Wealth's stake in Sonoco was reduced to just 475 shares, valued at $20,729 at the end of the quarter, suggesting a waning confidence in Sonoco's future performance, which may impact its investment strategy moving forward.
- Market Performance Analysis: As of February 3, 2026, Sonoco's stock was priced at $49.01, reflecting a 7.9% increase over the past year, yet underperforming the S&P 500 by 9 percentage points, indicating sluggish growth that may prompt investors to reassess its investment value.
- Investor Strategy Shift: In conjunction with the sale of Sonoco shares, Valley Wealth increased its investments in the Vanguard Russell 1000 Growth ETF and Apple, reflecting a strategic shift from underperforming traditional sectors to higher-growth tech stocks, aiming to mitigate risk and capitalize on market opportunities through diversification.
See More
Valley Wealth Reduces Sonoco Stake by Nearly 480K Shares
- Stake Reduction: Valley Wealth Managers disclosed in its February 4, 2026 SEC filing that it sold 479,832 shares of Sonoco Products Company, with the transaction valued at $19.9 million, reflecting a cautious outlook on the company's future growth potential.
- Asset Value Decline: The fund's position value dropped by $20.7 million quarter-over-quarter due to both the share sale and stock price fluctuations, indicating poor market performance and impacting investor confidence in Sonoco.
- Industry Context: Despite Sonoco's revenue surge of 42% in 2025, its historical low growth trajectory has led investors to be wary of its future prospects, prompting a shift of funds towards more promising tech stocks.
- Investment Strategy Shift: While reducing its stake in Sonoco, Valley Wealth increased investments in other top positions like the Vanguard Russell 1000 Growth ETF and Apple, indicating a strategy to seek broader growth opportunities in the current bull market.
See More
Goldman Sachs Optimistic on Credo Technology's Future
- Growing Market Demand: Analyst James Schneider from Goldman Sachs highlights a surge in demand for high-speed, short-range connectivity in AI data centers, which is expected to further drive growth for Credo Technology Group, showcasing the company's strong market potential.
- Buy Rating and Price Target: Goldman Sachs initiates coverage on Credo with a buy rating and sets a 12-month price target of $165, indicating a 29% upside from Wednesday's close, reflecting the analyst's confidence in the company's future performance.
- Significant Technological Advantage: Credo's Active Electrical Cables (AECs) technology offers low-cost, high-bandwidth, and highly reliable connectivity solutions, and Schneider believes this technology will remain mainstream for at least the next five years, further solidifying the company's market position.
- Diversification Strategy: Schneider commends Credo's diversification efforts into optical solutions, which he believes will support long-term growth, while also appreciating the company's carefully managed guidance and investor messaging.
See More
Nvidia Shares Decline, Yet OpenAI's Fundraising May Bring Benefits.
Nvidia Stock Performance: Nvidia's stock experienced a decline early Thursday despite positive analyst predictions regarding its upcoming earnings.
OpenAI Fundraising News: The drop in Nvidia's stock occurred alongside reports of significant fundraising plans from OpenAI, the developer of ChatGPT.
See More
China's Rapid Progress in Artificial Intelligence Development
- Intensifying Tech Competition: OpenAI's Sam Altman noted that China's progress in artificial intelligence is 'remarkable,' particularly in the race against the U.S. to develop artificial general intelligence (AGI), showcasing rapid advancements by Chinese tech companies across various fields.
- Proximity to Frontier: Altman emphasized that while Chinese tech firms are nearing the technological frontier in some areas, they lag in others, indicating a potentially uneven development landscape that could impact the global tech competition framework.
- Societal Application Rollout: As China accelerates the deployment of AI technologies across society, Altman's remarks reflect an acknowledgment of China's increasingly significant role in the global tech ecosystem, which may attract more investment and collaboration opportunities.
- Ongoing Monitoring of Developments: This is a breaking news story, and Altman's comments may trigger market interest in the future development of Chinese tech companies, prompting investors to closely monitor subsequent developments and policy changes.
See More
