New York, Feb 3, 2026, 16:46 EST — Trading after the close.
- Broadcom shares slipped roughly 3.3%, last seen at $320.33 in after-hours trading
- The company launched an enterprise Wi‑Fi 8 access point and switch platform designed for “AI-ready” networks
- Broadcom scheduled its fiscal first-quarter results and an investor call for March 4
Broadcom shares (AVGO) fell roughly 3.3% to $320.33 in after-hours trading Tuesday, slipping $10.81 off the previous close. The session was thinly traded, with the stock drifting between $308.83 and $338.76 after the bell. It had opened at $336.60 earlier. Some 36.5 million shares exchanged hands.
The decline hits harder now as investors turn wary of any “AI narrative” lacking immediate results, even from firms delivering the underlying tech. Broadcom finds itself caught in this squeeze, providing chips and software to corporate budgets that can tighten quickly when confidence wanes.
U.S. stocks took a hit Tuesday as concerns mounted that AI could ramp up competition among software companies, following Anthropic’s launch of a new tool. The S&P 500 dropped 0.85%, while the Nasdaq Composite slid 1.42%. Major AI players like Nvidia and Microsoft saw declines, with Alphabet and Amazon set to report earnings later this week. John Campbell at Allspring Global Investments described parts of the AI trade as “priced for perfection,” and Art Hogan of B. Riley Wealth warned software stocks “may well be disrupted.” (Reuters)
Broadcom unveiled an enterprise Wi‑Fi 8 access point platform and a campus switch platform on Tuesday, designed specifically for AI-ready networks. Sampling has begun for select early-access customers and partners. “The demand for a robust, intelligent, and secure network infrastructure has never been greater,” said Mark Gonikberg. Siân Morgan, research director at Dell’Oro Group, noted the system “addresses many of the critical challenges” facing enterprise networks. (Stock Titan)
Broadcom announced Monday it will release fiscal first-quarter results on March 4 after the market closes. The company will hold a conference call at 2 p.m. Pacific (5 p.m. Eastern) to go over the results and outlook. A webcast and audio replay will be accessible on its investor site. (Barchart)
Traders are tuning out the product news and zeroing in on guidance. The crucial issue: how fast enterprise networking and AI-driven demand convert into revenue—and how that impacts costs and profit margins.
But the AI build-out hasn’t translated into cleaner margins for all. Back in December, Broadcom warned that a bigger chunk of AI revenue might actually drag down gross margins. To put it in perspective, a basis point equals one-hundredth of a percentage point, and CFO Kirsten Spears highlighted about a 100-basis-point sequential dip. Analysts like Kinngai Chan from Summit Insights also flagged customer concentration as a risk, while CEO Hock Tan noted that Broadcom’s AI backlog is heavily focused on just five customers. (Reuters)
Broadcom will report and update its outlook on March 4. Until then, expect the stock to move in step with sentiment on AI spending and its impact on chip demand and software budgets.
