NEW YORK, Feb 24, 2026, 16:26 EST — After-hours
- AVGO slipped 0.7% after hours, with traders bracing for results coming March 4
- UBS stuck with its Buy rating and maintained that $475 price target, citing renewal risk tied to VMware contracts.
- Margins and the appetite for AI chips are in focus for investors, with tech stocks rallying across the board.
Shares of Broadcom Inc (AVGO.O) slipped 0.7% to $325.49 after the bell on Tuesday.
Broadcom is set to release its first-quarter fiscal 2026 numbers after markets close March 4, followed by a 5 p.m. ET conference call. Wall Street will be tracking demand trends for the company’s data-center chips and paying close attention to how software growth linked to VMware is shaping up.
Wall Street shook off a sharp selloff driven by AI jitters, bouncing back as tech shares powered the recovery. “Today we’re seeing a little bit of a buy on the dip,” said Matthew Keator, managing partner at the Keator Group. Reuters
UBS stuck with its Buy rating on Broadcom and kept the $475 price target in a note released Tuesday. Analysts pointed out that Broadcom’s semiconductor segment is valued higher than Nvidia and most rivals, but flagged risks tied to VMware contract renewals as those multi-year deals come up.
The $69 billion VMware acquisition, wrapped up by Broadcom in 2023, has firmly planted the company in the enterprise infrastructure software space. Now, shareholders are keeping tabs on not just chip demand, but also shifts in corporate IT budgets.
Broadcom rolled out fresh security patches for VMware Aria Operations this week, targeting a high-severity command-injection bug. The company warned in its advisory, quoted by SecurityWeek, that “a malicious unauthenticated actor may exploit this issue to execute arbitrary commands.” SecurityWeek
Tuesday’s market rebound gave Broadcom a lift, but the stock remains touchy—any suggestion that expansion might dent margins, and it’s off. Lately, traders aren’t seeing Broadcom as the usual slow-and-steady performer; it’s acting more like an AI bellwether in a jumpy market.
That risk swings in both directions. Back in December, Broadcom shares took a hit—dropping hard after the company flagged that stronger sales of custom AI chips, which carry slimmer margins, might pressure profitability. That margin worry is still lingering.
Come March 4, investors will be zeroing in on a few familiar stress tests—chip demand from hyperscale data centers remains front and center, margins are in focus, and VMware customer renewals are read as a signal: sticking around, or scaling back, or just walking away.
Eyes turn to March 4, when results and guidance drop. Management’s conference call is set for later that day.
