New York, January 25, 2026, 09:41 ET — Market closed.
- Broadcom dropped 1.7% on Friday, marking its fourth consecutive day of decline.
- Chip stocks swung erratically following Intel’s outlook, which stirred fresh concerns over supply and demand balance.
- With big tech earnings looming, investors brace for this week’s Fed decision.
Shares of Broadcom Inc. slipped 1.7% to finish at $320.05 on Friday, deepening a late-week drop. With Monday’s open approaching, semiconductors are once again in the spotlight. (Broadcom Investors)
The coming week is crucial, with the Federal Reserve’s first rate decision of 2026 looming alongside a packed schedule of megacap tech earnings. These events are expected to shape risk appetite, particularly for chipmakers linked to data-center spending. On Friday, the S&P 500 posted a modest gain while the Dow slipped. Chip stocks saw mixed results: Nvidia climbed, but Broadcom and Qualcomm pulled back. (MarketWatch)
Intel’s shares tumbled Friday after the company warned of supply shortages hampering its ability to keep up with booming AI demand for data-center chips, Reuters reported. TD Cowen analysts said the recent rally was “largely driven by ‘the dream’ rather than the near-term reality or fundamentals.” (Reuters)
Broadcom dipped to $314.11 on Friday before closing at $320.05, slipping from $325.49 the previous day. The stock is now roughly 9% below its January 16 close. (Investing)
Broadcom’s software division grabbed attention after Fidelity Investments announced it settled a lawsuit alleging Broadcom threatened to cut off access to VMware-origin “virtualization” software—tools enabling multiple virtual servers on a single physical machine. A Fidelity spokesperson said, “Broadcom’s services to Fidelity will continue uninterrupted, and there will be no impact on Fidelity’s business operations, customers, associates, or business partners.” (Reuters)
Even with a settlement in place, the dispute underscores that investors remain focused on how Broadcom handles pricing and renewals for VMware products—a segment that has faced close customer scrutiny since the acquisition.
There’s a more straightforward risk here: Friday’s drop could just be noise if the chip sector steadies. But if upcoming earnings shift views on tech budgets, a sharper slide could hit quickly.
Growth stocks sensitive to rates still face risk from a hawkish Fed surprise. Should the central bank tighten its stance on inflation, rising yields would likely pressure long-duration equities — a move that often drags down large-cap semiconductors.
The calendar shows no other events. The Fed will announce its decision Wednesday at 2:00 p.m. ET, with Chair Jerome Powell holding a press conference at 2:30 p.m. ET. (Federal Reserve)
Broadcom’s next big milestone is its earnings report, slated for about March 5, per Nasdaq’s earnings calendar. (Nasdaq)
On Monday, eyes will be on Broadcom to see if it can maintain the $320 level. Traders are also gauging if the chip sector will continue to follow Intel’s reset or shift focus to broader forces like Fed signals and forecasts from the biggest cloud and consumer-tech players on 2026 demand.
