Broadcom Inc. (NASDAQ:AVGO) shares are trading lower Tuesday, taking a pause after a strong rally that has seen the stock climb nearly 30% year-to-date.
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What To Know: The pullback comes amid a wave of news for the semiconductor and infrastructure software company, including high-profile product announcements, notable options market activity, and political trading disclosures.
The company recently introduced the Jericho4 ethernet fabric router, designed for next-generation distributed AI infrastructure. Built on a 3nm process, Jericho4 enables high-bandwidth, secure and lossless connectivity across data centers up to 100 kilometers apart, targeting the needs of hyperscalers like Microsoft and Amazon.
Broadcom says the platform can interconnect over one million XPUs and is part of a complete networking portfolio that also includes the Tomahawk 6 and Tomahawk Ultra chips. The launch underscores Broadcom's effort to capture growing demand for AI-related networking solutions as data center capacity requirements outgrow the limits of single-site deployments.
The company is also preparing for its VMware Explore 2025 event in Las Vegas later this month, where CEO Hock Tan will lead a keynote on private cloud and AI innovation. The conference will feature more than 400 sessions covering cloud infrastructure, private AI, modern applications and networking and security. Broadcom plans to take VMware Explore on a global tour after the Las Vegas event, with stops in Asia-Pacific, Europe and Japan.
In the options market, unusual activity was detected in Broadcom contracts, with 23 large trades flagged. While sentiment was mixed, the majority leaned bullish, and traders targeted a wide range of strike prices between $170 and $340. The activity suggests institutional investors are positioning for potential price moves ahead of Broadcom's next earnings release on Sept. 4, when the company will provide results and updated guidance.
Separately, a recent Congressional trading disclosure revealed Rep. Cleo Fields (D-La.) purchased shares of Broadcom, alongside other technology names, in July. Most of these trades were in the $1,000 to $50,000 range, but the disclosure highlighted continued political interest in large-cap tech stocks.
Despite Tuesday's decline, Broadcom remains one of the top-performing semiconductor names of 2025, outperforming the Nasdaq 100 on the back of its AI infrastructure strategy, strong demand for networking solutions and diversification into enterprise software.
AVGO Price Action: Broadcom shares were down 1.21% at $309.06 at publication on Wednesday, according to Benzinga Pro.
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