New York, February 20, 2026, 10:40 (EST) — Regular session
- Broadcom shares picked up slightly after the chipmaker rolled out its new 5G Advanced/6G radio chip.
- Investors are eyeing new signals that VMware clients are cutting back, pressured by steeper license fees.
- Broadcom has its earnings and outlook update slated for March 4—that’s the next catalyst.
Broadcom Inc (AVGO.O) climbed about 0.6% to $335.86 on Friday, moving with the chip sector a day after it rolled out a radio chip designed for 5G Advanced and 6G networks. Shares bounced in a range from $329.76 to $340.00. (MarketScreener)
This shift is significant. Investors haven’t hesitated to either bid up or slam semiconductor giants, depending on whether network upgrade spending is actually happening or simply hype. When Broadcom rolls out new silicon, it’s often a key indicator—traders look for hints about where the next wave of orders could land.
There’s also the unresolved debate over Broadcom’s software business. With VMware now under its wing, licensing and customer retention have become frequent headline risks. Traders have jumped at even slight signs of churn.
Broadcom’s newest offering, BroadPeak, is a system-on-chip—or SoC—that rolls several radio functions onto a single silicon unit. The company’s aiming squarely at “massive MIMO,” the dense, antenna-driven strategy telecom operators deploy to boost capacity on packed spectrum—think expanding the highway rather than increasing traffic.
Broadcom, in its product announcement, positioned the chip as a way to reduce power consumption for telecom equipment as networks move into higher spectrum bands. “The infrastructure behind it must evolve,” said Vijay Janapaty, vice president and general manager at Broadcom. The company noted it had already started shipping samples to early-access customers and partners. (markets.businessinsider.com)
Risk appetite edged up. The VanEck Semiconductor ETF gained roughly 0.7%. Nvidia and Marvell ticked higher too. S&P 500 and Nasdaq tracking ETFs notched minor gains.
VMware customers are pulling back. According to a CloudBolt-commissioned survey highlighted by Network World, 86% of those polled said they’re trimming VMware usage. Price hikes are part of the story—59% saw costs climb over 25%, while 14% reported prices doubling. “Migration from that layer is a multi-year program, not a procurement switch,” Greyhound Research chief analyst Sanchit Vir Gogia told Network World. (Network World)
Still, risks linger. Telecom budgets tend to move in fits and starts, and a fresh chip alone won’t seal new design deals. Software’s another question—if customers peel off from VMware faster than forecast, even workload by workload, that could drag on growth and cap the stock’s upside.
Next up for investors: Broadcom’s earnings, due out March 4 after the bell. The company follows with a conference call set for 5:00 p.m. ET. Traders will be watching closely for any fresh takes on networking and telecom chip demand, plus hints about VMware customers and pricing shifts. (seekingalpha.com)
