Broadcom Slides 23% Despite Google $175–185B CapEx and Meta $115–135B Plans
Broadcom shares have fallen 23% since December 2025 even as Google and Meta raised 2026 CapEx targets to $175–185 billion and $115–135 billion (up 97% and 73%). Meta's MTIA training boost and Broadcom's 19% discount to 52-week P/E with 41% implied upside make the pullback a buying opportunity.
1. Share Decline and CapEx Guidance
Broadcom shares tumbled 23% since December 2025 after Google lifted its 2026 CapEx estimate to $175–185 billion (97% increase) and Meta guided to $115–135 billion (73% growth), highlighting stronger spending trends at two of Broadcom's largest customers.
2. MTIA Chip Program Expansion
Meta’s expansion of its MTIA initiative into AI training workloads suggests rising demand for Broadcom’s co-developed accelerators and networking components as hyperscalers diversify chip usage beyond inference.
3. Valuation Metrics and Analyst Outlook
Trading at a 19% discount to its 52-week average P/E with analysts forecasting 41% upside, Broadcom’s recent sell-off is viewed as an attractive entry point given upgraded end-customer spending and favorable valuation.