New York, January 22, 2026, 16:46 (ET) — After-hours
- After-hours, Broadcom shares slipped roughly 1%, lagging behind the broader U.S. market gains
- The U.S. GSA rolled out a OneGov buying agreement, slashing prices on select VMware products by as much as 64%
- Oracle announced plans to transition the Oracle Cloud VMware Solution to a BYOL model beginning in March
Broadcom Inc. shares slipped roughly 1% in after-hours trading Thursday, erasing earlier gains and ending a choppy session lower. The stock last traded down $3.43, or 1%, at $325.49, after fluctuating between $336.93 and $324.84.
This shift is crucial as Broadcom finds itself caught between two major bets: the surge in AI data-center expansions boosting chip sales, and VMware’s steady software revenue stream. Investors are scrambling to figure out which force will dominate this quarter.
The U.S. General Services Administration announced a new OneGov agreement with Broadcom, offering discounts of up to 64% on select VMware products through May 2027. 1
In the GSA release, Administrator Ed Forst emphasized the agency’s push to “move fast to deliver acquisition deals that save taxpayers money.” Broadcom CEO Hock Tan highlighted a “strategic partnership” designed to boost security and efficiency across federal agencies. 2
OneGov aims to unify the federal government as one purchaser, forcing vendors to tighten pricing and streamline procurement, Washington Technology reported. Since the strategy kicked off in April 2025, over a dozen tech companies have inked comparable deals. 3
Cloud partners are shifting their VMware licensing strategies. Oracle announced it has revised its deal with Broadcom to sync Oracle Cloud VMware Solution with Broadcom’s “bring your own license” (BYOL) model. Under BYOL, customers purchase VMware licenses independently and bring them to Oracle’s cloud. Starting March 22, new environments must use BYOL, and by May 21, Oracle plans to move exclusively to BYOL offerings. 4
Broadcom slipped despite Wall Street gaining for a second day in a row. The S&P 500 climbed 0.53%, while the Nasdaq added 0.91%. This followed President Donald Trump backing down on tariff threats against European allies and U.S. November PCE inflation coming in slightly above expectations, Reuters reported. 5
Chip earnings are taking a hit as well. Intel forecast first-quarter revenue and profits below expectations, sending its shares down 7% in after-hours trading, Reuters reported. 6
Broadcom entered Thursday weakened, having dropped 1.14% on Wednesday, marking its second consecutive day of losses, MarketWatch reports. 7
But the VMware drive isn’t without downsides. Discounts risk squeezing software prices, and changes in licensing might rattle customers if renewals lag or workloads move away. Broadcom has also dealt with investor jitters over profits in custom AI chips, warning back in December that this shift in product mix could tighten margins. 8
Traders will be eyeing the next session to see if Intel’s late update ripples through the broader chip sector, and whether news around VMware’s software moves beyond mere noise.
Broadcom’s upcoming quarterly report is set for March 5, according to Nasdaq’s earnings calendar. Investors are keenly watching for clear updates on VMware’s growth and any new insights into AI-related margins. 9
