New York, January 21, 2026, 4:31 PM EST — After-hours
- Broadcom shares slipped about 1% on Wednesday, extending a sharp drop a day earlier.
- A new U.S. GSA OneGov agreement offers up to 64% discounts on select VMware/Tanzu and security software through May 2027.
- Investors are watching tariff headlines and Broadcom’s next results, currently planned for March 4 after the close.
Broadcom shares fell 1.1% to $328.80 in late trading on Wednesday, after swinging between $324.30 and $337.81 in the session. Volume was about 31.7 million shares.
The move followed Tuesday’s broad selloff, when Wall Street logged its biggest daily drop in three months after President Donald Trump’s tariff threats against European allies revived volatility fears. Trump had said additional 10% import tariffs would start February 1, with a higher rate slated for June 1 unless a deal was reached on Greenland, Reuters reported. (Reuters)
Broadcom has become a key read-through for how fast big customers are building AI infrastructure, and how much profit they can squeeze out of it. The stock’s December slide after its results also sharpened nerves about whether AI-heavy growth comes with thinner margins. (Reuters)
On Wednesday, Broadcom said the U.S. General Services Administration and the company struck a OneGov agreement that lets federal agencies buy select Broadcom software at a 64% discount off list, valid until May 2027. The package includes VMware Tanzu Platform, Tanzu Data Intelligence, VMware vDefend and VMware Avi Load Balancer, Broadcom said. (Broadcom News and Stories)
Broadcom CEO Hock Tan called the deal a step that “reinforces our commitment to optimizing value” for federal agencies, according to FedScoop. GSA Administrator Ed Forst said the agreement would “save taxpayers money,” the outlet reported. (FedScoop)
The market backdrop remains jumpy for tech names tied to corporate spending. Morgan Stanley downgraded the IT hardware sector on Tuesday, warning a “perfect storm” of slowing demand, input-cost inflation and “rich valuations” was pushing it to get more defensive into 2026. (Reuters)
Even with the tariff pressure easing midweek, the tape is still uneven. U.S. stocks closed higher on Wednesday after Trump said a Greenland framework deal was reached and the planned tariffs would not go into effect, lifting the Dow, S&P 500 and Nasdaq by about 1% each, Reuters reported. (Reuters)
Broadcom had been hit hard in Tuesday’s swoon. The stock dropped 5.43% to $332.60 in that session, underperforming peers in a broad slide that also pushed Nvidia down 4.38%, MarketWatch data showed. (MarketWatch)
Investors still have last month’s margin message in mind. Broadcom has said gross margin in the current quarter would fall about 100 basis points — one basis point is 0.01 percentage point — largely because a higher share of revenue is coming from AI products, which carry lower margins, Reuters reported. (Reuters)
The risk for bulls is that a softer enterprise spending cycle shows up at the same time tariff noise returns, forcing customers to delay projects and leaving chip and software valuations exposed. Any sign that AI demand is shifting from “must-have” to “nice-to-have” would likely hit the most.
Next up: markets will keep one eye on any renewed tariff signals ahead of February 1, and another on Broadcom’s next earnings, which the company has said it currently plans to report after the close on March 4. (Investing)
