Broadcom, Toppan open Singapore's first advanced chip substrate facility

Broadcom (AVGO) has increased its dividend for 15 consecutive years, with the latest 10% raise in December 2025. The company's free cash flow grew 95% year-over-year to $13.7 billion in Q3 2026, driven by AI semiconductor revenue. Dividends now represent a smaller share of cash flow, at 23% in the latest quarter. The next dividend raise is expected in December 2026, based on fiscal 2026 performance.

OpenAI halted advanced AI training due to safety concerns, causing premarket drops in AI chipmaker stocks. AMD fell 2.5%, Intel 3%, Nvidia and Broadcom 1%. Memory chip suppliers also declined amid broader market pressure.

Chip stocks fell Monday despite Nvidia's 3% gain after a $150B share buyback announcement. The Philadelphia Semiconductor Index dropped 2.6%. SK Hynix fell 5.68%, AMD dropped 5%, Micron declined 4.5%, and Intel fell 4.5%. Broader market selloff and inflation concerns weighed on tech stocks.

AMD, Nvidia, and other AI chip stocks fell premarket after OpenAI paused AI model training for safety checks. AMD dropped 2.5%, Intel 3%, and Nvidia 1%. OpenAI's pause introduces uncertainty for AMD's AI growth story, though it's not yet clear if this will impact broader AI infrastructure spending.

NVIDIA's board authorized a $150B buyback increase, boosting its stock by 2%. AMD and Broadcom slipped, with no sector-wide impact. NVDA's gain is company-specific, as SOXX and QQQ both fell. The buyback's deployment pace will be key for investors.

Broadcom (AVGO) and Marvell (MRVL) are both benefiting from AI infrastructure growth. AVGO's AI revenue surged 221% YoY to $16.7B in Q3 FY2026, while MRVL earned 79% of its revenue from data centers in Q2 FY2027. Both have partnerships with Google (GOOG) for AI chips. AVGO expects $58B AI revenue in FY2026, growing to $230B by FY2028. MRVL projects 45% YoY revenue growth in FY2027. AVGO trades at 21.6x FY2027 earnings, while MRVL trades at 57.3x FY2028 earnings.