Broadcom shares climbed Tuesday, July 14, 2026, after Morgan Stanley published one of its most forceful defenses yet of the company’s position in artificial intelligence chips.
The relief looks fragile
The stock is still down sharply from the record high it set barely six weeks earlier, and this year’s gain has trailed the rest of the chip sector by a wide margin. Broadcom Inc (AVGO) shares rose 1.32% on July 14 to close at $389.11, though they had climbed nearly 3% earlier in the session. Despite the day’s gain, the stock remains down approximately 19.1% from its record closing high of $480.77 set on June 2, 2026, according to data from TheStreet.
So far this year, Broadcom has gained only a modest amount, badly lagging the broader semiconductor rally. Morgan Stanley analyst Joseph Moore addressed that gap directly in a note to clients, saying he was surprised by Broadcom’s underperformance given the strength of its AI growth trajectory, according to Seeking Alpha. He traced the weakness to one persistent fear: that Taiwan’s MediaTek is quietly taking over Broadcom’s work building Google’s Tensor Processing Units, the search giant’s own AI processors and an alternative to buying chips from Nvidia.