Broadcom shares surges 3.76% in pre-market trading driven by AI growth optimism and expanding order backlog

Broadcom shares surged 3.7566% in pre-market trading on Jan. 12, 2026, driven by optimism around its AI-driven growth trajectory and expanding order backlog for specialized semiconductors.

Analysts highlight the company’s robust AI product pipeline, with Citigroup projecting AI revenue could exceed $50 billion in fiscal 2026 and reach $100 billion by 2027. This growth is fueled by demand for application-specific integrated circuits (ASICs) in data centers, where Broadcom’s IP portfolio and manufacturing partnerships enable scalable custom chip solutions for clients like Alphabet and OpenAI. The firm’s role in Apple’s AI chip development further underscores its strategic positioning in the sector.

Positive sentiment was reinforced by bullish analyst coverage, as investors appear to prioritize long-term AI infrastructure opportunities over recent short-term volatility. The stock’s pre-market rally suggests market confidence in Broadcom’s ability to capitalize on the shift toward energy-efficient, task-specific chips for inference workloads, a segment where its competitive advantages in design and manufacturing are expected to compound over time.