Broadcom shares, along with Nvidia, fell more than 3% during Wednesday's trading session. A broader selloff in software stocks extended to the semiconductor sector. Concerns about future AI demand contributed to the negative sentiment, causing several major chipmakers to post significant losses.
Broadcom's stock reversed course in after-hours trading, jumping over 6%. Alphabet reportedly triggered this rebound.
Alphabet announced a substantial increase in its planned capital expenditures for 2026. Investors anticipate the increased spending on data centers and AI infrastructure will benefit suppliers like Broadcom.