Gotrade News - Broadcom climbed 3.6% to $428.92 after launching its BCM68850 chip with integrated AI and Wi-Fi 8 capabilities. SanDisk surged 6.9% to $1,580.12, extending year-to-date gains beyond 500% on strong AI-driven memory demand.
Investors are pricing in a multi-year AI infrastructure cycle as hyperscaler orders deepen and custom silicon partnerships expand. The rally also reflects renewed conviction that semiconductor supply chains will absorb sustained data center buildouts through 2027.
Key Takeaways
- Broadcom guided Q2 AI revenue to $10.7 billion and projects over $100 billion annually by 2027.
- SanDisk beat consensus EPS by nearly 60% and guided fiscal Q4 revenue up to $8.25 billion.
- Huawei unveiled LogicFolding architecture, targeting 1.4-nm-equivalent density by 2031 without EUV tools.
Broadcom and SanDisk Lead the AI Hardware Bid
According to Investing.com, Broadcom (AVGO) rose 3.6% after Citi named it the top semiconductor pick for 2026. UBS raised its price target to $490 from $475, and 26 analysts now maintain a Buy rating.
Broadcom reported Q1 FY2026 AI revenue of $8.4 billion and guided Q2 to $10.7 billion, with earnings due June 3, 2026. Management projects annual AI chip sales could exceed $100 billion by 2027, anchored by deals with Google, Anthropic, Meta, OpenAI, and Microsoft.
As reported by Investing.com, SanDisk (SNDK) posted fiscal Q3 2026 non-GAAP EPS of $23.41 against a $14.66 consensus. The company guided fiscal Q4 revenue to a range of $7.75 billion to $8.25 billion.
Citi lifted its SanDisk target to $2,025 from $1,300, while Melius Research raised its target to $2,350 from $1,500. Billionaire David Tepper's Appaloosa Management disclosed a new stake of roughly 281,250 shares, reinforcing institutional conviction in the NAND flash cycle.
Huawei Pushes a Sanctions-Era Workaround
Per Tom's Hardware, Huawei executive He Tingbo unveiled the Tau Scaling Law at IEEE ISCAS Shanghai on May 25, 2026. The framework positions 3D chip stacking as a successor to traditional Moore's Law transistor shrinks.
The accompanying LogicFolding architecture folds 2D circuits into vertical stacks, lifting transistor density by more than 50% without EUV lithography. Kirin chips launching in late 2026 will be the first to adopt the design, running performance cores at 3.1 GHz.
Huawei said it has designed and mass-produced 381 chips using related techniques over the past six years. The announcement reads as a direct response to US export controls that restrict China's access to advanced lithography from suppliers like Nvidia (NVDA) and equipment makers tied to leading-edge fabs.
The competitive backdrop matters for US-listed chipmakers, since incremental Chinese self-sufficiency could shift global demand allocation over time. For now, hyperscaler capex tied to American AI accelerators remains the dominant driver of semiconductor revenue.
The S&P 500 closed up 0.7% and the Nasdaq added 1.1% on the session, with broad AI momentum spilling into adjacent names across the sector. Memory, custom ASIC, and foundry exposure all benefited from the renewed bid.
