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Additional Reading from MarketBeat Media Why Taiwan Semiconductor and Meta Could Be the Hidden Bull Case for BroadcomBy Leo Miller. First Published: 1/22/2026. 
Key Points - Broadcom shares are struggling to recover after a steep December drop, down meaningfully in 2026.
- However, news coming from huge players in semiconductors and AI is fueling support for the stock's outlook.
- META's soon-to-be-released CapEx guidance could result in the next significant move for AVGO shares.
After ending 2025 poorly, shares of semiconductor giant Broadcom (NASDAQ: AVGO) have remained under pressure in 2026. Year-to-date, shares are down nearly 4%. It's worth noting Broadcom isn't alone: artificial intelligence (AI) processor stock NVIDIA (NASDAQ: NVDA) is down about 4.5%. Broadcom's slow start to 2026 arrives even as key players in the AI ecosystem are signaling continued demand that could support the company's business. Those signals are coming from the likes of Taiwan Semiconductor Manufacturing (NYSE: TSM) and Meta Platforms (NASDAQ: META). Recent announcements suggest momentum for Broadcom could persist through 2026 and beyond. TSMC Signals Strong AI-Accelerator Demand Going Forward The largest gold buyer in the world is expected to release a revolutionary way to invest in gold in 2026, potentially changing how everyday Americans save their wealth with a click of a button. Gold would need to climb another $4,500 for you to double your money at current prices. But one gold stock trading around $1.60 only needs to rise another $1.60 for you to double. That's the conservative estimate of what could happen when this new investment method becomes available to the public. Get the details on this opportunity before the 2026 launch. On Jan. 15, TSMC released its latest earnings report, and the results were strong. Revenues rose by more than 25%, well above the roughly 19% growth analysts had forecast. As one of Broadcom's key manufacturing partners, robust TSMC sales point to healthy upstream demand from Broadcom and its customers. More importantly, TSMC projects continued strength. For 2026, the company sees sales rising close to 30%, a slight deceleration from its 2025 growth of 31.6%—a signal that demand from Broadcom's customer base is likely to persist. TSMC also provided longer-term guidance for AI-accelerator revenues—the exact category that includes Broadcom's XPUs and NVIDIA's GPUs. It now expects AI-accelerator sales to grow at a compound annual rate approaching the mid-to-high 50% range from 2024 to 2029, up from prior long-term projections in the mid-40% range. That upward revision suggests AI-accelerator demand may be more durable than previously thought, which is a plus for Broadcom. Meta Compute Bolsters AVGO's Custom Chip Outlook Meta Platforms CEO Mark Zuckerberg implicitly signaled an opportunity for Broadcom in his Meta Compute announcement, which outlines the company's plan to greatly expand its data-center capacity over the coming years. Within that announcement, Zuckerberg referenced Meta's "silicon program," its effort to develop chips in-house. While the two firms haven't officially confirmed a deal, Broadcom is widely believed to be Meta's partner in developing those in-house chips, which Meta calls Meta Training and Inference Accelerators (MTIA). Meta's focus on custom silicon is logical. In June 2025, Meta published a paper on its second-generation chip, the MTIA 2i, showing that when used on supported models the MTIA 2i reduced total cost of ownership by 44% versus GPUs. Meta has only just begun deploying its second-generation chips at scale, so future generations could yield further improvements—good news for any supplier involved in their development. Broadcom's largest custom-chip development partner is Alphabet, Google's parent company (Alphabet (NASDAQ: GOOGL)). Alphabet recently released the seventh edition of its tensor processing unit (TPU); Goldman Sachs notes the TPU v7 offers a roughly 70% reduction in cost per token versus TPU v6, putting it "on par" with NVIDIA's Grace Blackwell 200. Improved economics for running AI workloads make custom silicon more attractive and expand the addressable market for Broadcom. Meta's explicit reference to its silicon program within Meta Compute signals a long-term commitment to in-house chip development, which should support Broadcom if the companies continue to collaborate. While there's no guarantee Broadcom will remain Meta's partner indefinitely, its track record with Google provides reason to expect ongoing opportunities. META's 2026 CapEx Guidance: A Potential Catalyst for AVGO Despite Broadcom's slow start to 2026, there are clear catalysts on the horizon. Meta is set to report full-year 2025 earnings on Jan. 28, and analysts expect the company to provide capital expenditure (CapEx) guidance for 2026. Given Meta's relationship with Broadcom, its planned spending could be a meaningful catalyst—positive or negative—for AVGO shares depending on the level and pace of data-center and custom-silicon investment.
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