NEW YORK, Jan 29, 2026, 17:58 EST — After-hours
- Broadcom dropped in a volatile session, dipping almost 4% before pulling back some of the losses
- A steep decline in Microsoft shares has once again raised questions about the timeline for returns on Big Tech’s AI investments
- Traders are now focused on how Apple’s earnings will be received, with Broadcom’s results due in early March.
Shares of Broadcom Inc slipped 0.8% to $330.73 in after-hours trading Thursday, following a day where the stock fluctuated between $320.29 and $335.84. Trading volume hit roughly 20.4 million shares.
This move is significant since Broadcom straddles the market’s AI trade fault line — it’s both a chipmaker and an enterprise software provider. Investors have grown less tolerant of “spend now, profit later” pitches.
The broader market reflected that change. The S&P 500 slipped 0.1%, while the Nasdaq dropped 0.7%, dragging technology stocks lower. John Praveen, managing director at Paleo Leon, pointed to worries that “AI investments will eat the software companies’ lunches.” (Reuters)
Microsoft set the tone. It revealed a surge in capital spending — money spent on buildings and equipment — yet its cloud revenue growth fell short of expectations, dragging shares down. Eric Clark, portfolio manager at the LOGO ETF, pointed out the pressure: “revenues are up 17% and the cost of revenues are up 19%.” (Reuters)
Chip trading didn’t move in just one direction. Nvidia gained 0.5%, while AMD and Intel slipped slightly. The iShares Semiconductor ETF climbed 0.2%, but Broadcom lagged behind the group.
Broadcom has long been the go-to for tapping into data-center expansion and rising corporate IT spending. Today, the stock moves without any fresh company updates—just following the broader market mood.
There’s a real risk here: if hyperscalers pull back on orders or delay deliveries as they work through expensive AI investments, suppliers will notice quickly. Another issue is valuation — when interest rates rise and policy uncertainty spikes, high-multiple tech stocks often take a sharp hit.
Apple shook up the scene late Thursday with earnings that topped Wall Street expectations, fueled by a rebound in China. CEO Tim Cook described demand for the newest iPhones as “staggering.” That signal carries weight for sentiment, even if it doesn’t neatly translate to every supplier. (Reuters)
The Federal Reserve kept interest rates unchanged on Wednesday, highlighting persistent inflation concerns. This stance has traders zeroed in on when the central bank might ease policy next. Tech shares often react sharply to these rate signals since higher borrowing costs diminish the present value of future earnings. (Reuters)
Broadcom’s next major event is its quarterly earnings report, due around March 5. Investors want clear insights on AI-driven demand and enterprise spending, trying to figure out if this week’s sell-off is just a breather or the beginning of a bigger slump. (Nasdaq)
