Meta Awards AI Hardware Contract to Nvidia, Weakening Broadcom’s Networking Growth
Broadcom shares gained 42% over the past year but are down 6.5% in 2026 as DA Davidson initiated coverage with a Neutral rating and $335 target and Jefferies reaffirmed a Buy rating with a $500 target. Meta awarded its AI hardware contract to Nvidia, potentially trimming Broadcom’s networking revenue growth.
1. Share Performance and Price Targets
Broadcom's shares have risen 42% over the past year but declined 6.5% year-to-date. DA Davidson initiated coverage with a Neutral rating and $335 target while Jefferies reaffirmed a Buy rating with a $500 target.
2. Cramer’s Storage Sector Commentary
Jim Cramer suggested that a pullback in storage device stocks like Micron, Western Digital, Seagate and SanDisk could trigger a rally in Broadcom shares alongside NVIDIA and AMD.
3. Meta AI Contract to Nvidia
Meta awarded its AI hardware contract to Nvidia, excluding Broadcom from this multi-billion dollar deal and potentially limiting its networking revenue growth in 2026.