New York, February 4, 2026, 16:14 (EST) — After-hours
- Broadcom shares dropped roughly 3.8% on Wednesday, dragged down by a steep tech sell-off.
- The chipmaker will release its fiscal first-quarter results after the market closes on March 4.
- A new enterprise Wi‑Fi 8 product dropped a day ahead of schedule, yet jitters over the wider “AI trade” took center stage.
Shares of Broadcom (AVGO.O) dropped 3.8% on Wednesday, slipping to $308.28 amid a broader tech and AI-related selloff that’s now stretched over two sessions.
This move is significant since Broadcom plays a central role in the AI buildout, selling networking gear and custom chips for data centers. It also owns a major infrastructure software unit via VMware. When investors pull back, Broadcom often feels the impact on both fronts.
Wednesday’s theme was clear: de-risking. U.S. stocks closed down as investors grew wary of lofty valuations and whether the AI-driven rally is outpacing near-term earnings. AMD plunged after forecasting weaker revenue, dragging the semiconductor index significantly lower. “The market is suddenly skeptical,” noted Jed Ellerbroek, portfolio manager at Argent Capital. (Reuters)
Broadcom has a clear catalyst lined up. It announced Monday it will release fiscal first-quarter results on March 4 after the market closes, followed by a conference call at 5 p.m. ET. (Stock Titan)
Just a day later, Broadcom unveiled what it claims is the industry’s first enterprise Wi‑Fi 8 access point and switch solution designed for “AI-ready” networks. The offering centers on a new accelerated processing unit and a fresh campus switch platform. “The demand for a robust, intelligent, and secure network infrastructure has never been greater,” said Mark Gonikberg, senior vice president and general manager at Broadcom, in the announcement. (Businessinsider)
Wi-Fi 8 is still in its early stages, but the promise is clear: increased bandwidth, reduced latency, and enhanced telemetry aimed at enterprises handling heavier edge workloads. Broadcom also spotlighted MACsec, a standard that encrypts data across network links, along with “AIOps,” which leverages AI to streamline IT operations.
Siân Morgan, research director at Dell’Oro Group, said Broadcom’s full-spectrum strategy—from access point to switch—should aid companies in handling today’s enterprise network challenges. (Computer Weekly)
The market, however, has been focused more on the broader AI and software disruption story than on individual product announcements. Nvidia CEO Jensen Huang dismissed the notion that AI will “replace” software tools as “illogical” this week, following a worldwide selloff in software stocks that spread across tech sectors. (Reuters)
Broadcom’s shares have fallen about 7% since closing on Monday, dipping to an intraday low around $295 on Wednesday, exchange data show. (MarketScreener)
But investors face a more fundamental concern: margins. Broadcom has previously flagged that increasing sales of lower-margin custom AI processors could tighten profitability. This matters as traders wrestle with how fast AI spending will translate into actual earnings. (Reuters)
March 4 is the next date to watch. Investors want straightforward numbers and a solid sense of demand — and perhaps more crucially, how that demand impacts margins — especially after a week where the market has been unforgiving to anything that seems overcrowded.
