U.S. Stocks Decline as Oil Prices Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 05 2026
0mins
Should l Buy AVGO?
Source: Benzinga
- Oil Price Surge: West Texas Intermediate crude jumped 6.5% to $79.7 per barrel, marking its highest level since January 2025 and an 18% increase for the week, exacerbating inflation fears and driving Treasury yields higher.
- Rising Treasury Yields: The 10-year U.S. Treasury yield climbed to 4.143%, while the 30-year yield rose to 4.754%, as markets accelerated their repricing of inflation risk, reflecting heightened investor anxiety over future rate policies.
- Major Indices Decline: The S&P 500 fell 0.7% to 6,820, and the Dow Jones Industrial Average dropped 826 points, or 1.9%, marking its steepest single-session loss since April 2025, indicating growing concerns about the economic outlook.
- Digital Assets Hit: Bitcoin fell 3.1% to $71,090.45, reflecting a risk-averse sentiment that spread to the digital asset market, with global markets declining in sympathy, particularly affecting stocks tied to global growth prospects.
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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: 406.540
Low
370.00
Averages
457.75
High
525.00
Current: 406.540
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.
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- Chip Development: Marvell is reportedly in discussions with Google to develop two new chips aimed at enhancing AI model efficiency, including a memory processing unit designed to work alongside Google's tensor processing unit (TPU), thereby strengthening Marvell's competitive edge in the AI sector.
- Analyst Optimism: Wells Fargo analysts noted that a partnership with Google's chip business would provide a “meaningful incremental positive” for Marvell, enhancing its customer diversification capabilities and reflecting a positive outlook on Marvell's future.
- Technological Innovation: The recent launch of Marvell's Structera S 30260 CXL switch, which enables rack-level memory pooling in conjunction with its Structera A near-memory accelerators and Structera X memory expansion controllers, showcases its technological advantages in high-performance computing, further solidifying its market position.
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See More
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See More
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See More
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- Stock Surge: Marvell Technology saw a premarket gain of over 6% on Monday, primarily due to reports suggesting a potential partnership with Google for future AI chip development, which boosts market confidence in its growth prospects.
- Chip Development: Marvell is reportedly in discussions with Google to develop two new chips aimed at enhancing AI model efficiency, including a memory processing unit designed to work alongside Google's tensor processing unit (TPU), thereby strengthening Marvell's competitive edge in the AI sector.
- Analyst Optimism: Wells Fargo analysts noted that a partnership with Google's chip business would provide a “meaningful incremental positive” for Marvell, enhancing its customer diversification capabilities and reflecting a positive outlook on Marvell's future.
- Technological Innovation: The recent launch of Marvell's Structera S 30260 CXL switch, which enables rack-level memory pooling in conjunction with its Structera A near-memory accelerators and Structera X memory expansion controllers, showcases its technological advantages in high-performance computing, further solidifying its market position.
See More
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- Tech Stocks Surge: Shares of Marvell Technology and Broadcom jumped more than 7% following reports of talks with Google to develop new AI chips, although Broadcom's stock fell nearly 1.5% on the news.
- TopBuild Acquisition: TopBuild's stock surged over 17% after QXO announced its acquisition for $17 billion, which is expected to create a higher-margin business and be immediately accretive to earnings.
- AST SpaceMobile Drop: AST SpaceMobile's shares fell 15% after a satellite was launched into the wrong orbit, although the company expects to recover costs through insurance and plans to conduct monthly orbital launches starting in 2026.
See More
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- Partnership Extension: Broadcom and Meta have extended their multi-year partnership through 2029 to co-develop custom AI silicon, which is expected to significantly enhance Meta's data center infrastructure efficiency, thereby strengthening its competitive edge in social media and generative AI.
- Technological Innovation: Under the agreement, Meta will utilize Broadcom's XPU platform to build the industry's first 2-nanometer AI compute accelerators aimed at achieving its 'personal superintelligence' goals, which not only reduces reliance on expensive third-party GPUs but also optimizes hardware performance for specific workloads.
- Market Impact: This collaboration provides Broadcom with a multi-billion-dollar long-term revenue commitment and signifies a shift in the AI industry from the experimental phase to the infrastructure phase, likely attracting more investors to tech-focused ETFs and mitigating the risks associated with investing in individual stocks.
- ETF Investment Opportunities: Investors can gain exposure to the synergy between Broadcom and Meta through tech ETFs like IGM, QQQ, and AIQ, which have seen year-to-date gains of 5.8% and 4.4% respectively, indicating strong market performance and potential for future growth.
See More
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- Revenue Growth Comparison: Broadcom achieved a 28% year-over-year revenue growth last quarter, while Apple only grew by 16%, indicating Broadcom's strong performance in high-speed networking hardware and AI accelerators, which could significantly enhance its market value in the coming years.
- AI Chip Demand Outlook: Broadcom anticipates over $100 billion in AI chip revenue by 2027; despite risks from customer concentration, its robust profitability and strong market demand could drive its market cap to double.
- TSMC Market Dominance: Taiwan Semiconductor Manufacturing holds a 72% share of the foundry market, with a 40% year-over-year revenue growth in Q1, and AI chip demand expected to grow over 50% annually, further solidifying its leadership in the semiconductor industry.
- Investor Focus: Broadcom and TSMC stocks trade at 35 and 25 times earnings, respectively, and if they meet analysts' earnings growth expectations, they could surpass Apple's valuation in the coming years, attracting long-term investor interest.
See More
Broadcom and TSMC: Core Players in AI Industry
- Broadcom's Strong Momentum: Broadcom achieved a 28% year-over-year revenue growth last quarter, significantly outpacing Apple's 16%, indicating that its robust performance in the AI semiconductor market could drive its market cap to double in the coming years.
- TSMC's Market Dominance: TSMC holds a 72% share of the foundry market, with first-quarter revenue growth accelerating to 40%, and AI chip demand is expected to grow over 50% annually, further solidifying its market position.
- Significant Earnings Growth Disparity: Analysts project Broadcom's earnings per share to grow at an annualized rate of 41%, compared to Apple's 11%, positioning Broadcom with the potential to surpass Apple's market cap in the coming years.
- Risks and Opportunities: While Broadcom's reliance on six major AI customers poses a risk of spending pauses, its visibility into over $100 billion in future AI chip revenue underscores its critical role in an AI-driven economy.
See More
Broadcom Extends AI Chip Deal with Meta Platforms
- Deal Extension: Broadcom has extended its agreement with Meta to supply 1 gigawatt of custom AI chips through 2029, marking the beginning of a multi-generational chip development roadmap that solidifies Broadcom's leadership in the AI market.
- Technical Collaboration: Meta recently unveiled four generations of MTIA chips, with Broadcom's support enabling the MTIA 300 to be used for ranking and recommendation training, while the MTIA 400, 450, and 500 are specifically designed for inference tasks, showcasing the depth of their technical partnership.
- Market Outlook: Broadcom anticipates delivering $100 billion worth of custom AI chips by 2027, and with approximately $20 billion in AI revenue projected for 2025, this ambitious target is set to significantly drive the company's growth trajectory.
- Industry Trends: As hyperscalers seek alternatives to Nvidia's expensive GPUs, custom AI chips are becoming a popular choice, and Broadcom's strong presence in networking is attracting more companies to collaborate, indicating robust growth potential ahead.
See More
