New York, January 19, 2026, 18:37 EST — Market closed
- Broadcom ended the day 2.6% higher, closing at $351.71, after the stock swung about $10 during the session.
- U.S. markets remained closed Monday in observance of Martin Luther King Jr. Day; trading picks back up Tuesday.
- Traders are zeroing in on new tariff news and the PCE inflation report due Thursday.
Broadcom shares closed up 2.6% at $351.71, swinging between $344.27 and $354.30 during the session. Roughly 31.3 million shares traded hands.
U.S. stock markets remained closed Monday for Martin Luther King Jr. Day, with trading set to resume Tuesday. Broadcom investors now face a day to mull over macroeconomic news ahead of the reopening. 1
The bigger risk for Tuesday is whether fresh tariff threats will worsen the risk-off mood gripping global markets. President Donald Trump announced plans to slap a 10% import tax on goods from eight European countries starting in February. Stephen Innes of SPI Asset Management cautioned this move might spark “a slow rebalancing” away from U.S. assets, rather than an immediate trade shift. 2
In Europe, U.S. tech giants listed in Frankfurt dropped on the tariff headlines. Nasdaq 100 futures slipped 1.25%, underscoring how chip stocks often act as a barometer for overall tech sentiment when markets get jittery. 3
Broadcom didn’t release any new company-specific updates Monday. Instead, the stock is riding on familiar factors: anticipated AI chip demand, software revenue growth linked to the VMware acquisition, and the impact of interest rates on high-multiple tech names.
The company has warned investors to brace for margin fluctuations as its revenue mix changes. After Broadcom’s recent results, Chief Financial Officer Kirsten Spears noted that first-quarter gross margin is expected to drop roughly 100 basis points — with one basis point equal to 0.01 percentage point — mainly due to a larger share of AI-related sales. 4
Traders will zero in on Tuesday’s open, track any tariff news developments, and brace for the next inflation update. The U.S. PCE price index, the inflation measure the Fed watches most closely, is set for release on January 22. 5
Risks run in both directions. Should tariff threats solidify into actual policy, capital expenditure and international demand could take a hit—something semis typically dislike. On the corporate front, any hint that AI infrastructure spending is cooling off, or that margins are worse than expected due to product mix shifts, would probably hit the stock quickly.
Broadcom holders head into Tuesday with shares hovering around the mid-$350s, eyeing two key events: the U.S. market reopening on January 20 and the PCE report due January 22.
