By Kaustubh Bagalkote
Publication Date: 2026-05-12 15:06:00
Broadcom Inc (NASDAQ:AVGO) shares traded lower on Tuesday morning. The stock dropped approximately 1.5% in early trading as the decline follows a broader market retreat and a rally on Monday.
Nasdaq futures fell 0.92%, while S&P 500 futures shed 0.45%.
Market Volatility Dampens AI Momentum
This record-breaking private credit deal would support custom AI chip development.
Microsoft Commitment Remains Key
Broadcom’s partnership with OpenAI remains a focal point, with The Information reporting an $18 billion financing hurdle last week.
Broadcom reportedly wants Microsoft Corp (NASDAQ:MSFT) to commit to purchasing 40% of the initial chip production. Broadcom views this commitment as critical to its confidence in repayment.
Goldman Sachs Maintains Bullish Stance
Despite the Tuesday pullback, analysts see long-term tailwinds. Goldman Sachs analyst James Schneider reiterated a Buy rating Sunday.
He maintained a $480 price forecast. Schneider noted that “agentic AI” will sharply increase…