New York, Feb 2, 2026, 10:07 EST — Regular session
- Broadcom shares saw minimal movement in early trading.
- The chipmaker scheduled its quarterly results and outlook call for March 4.
- Reports of VMware not renewing contracts with some cloud partners intensified scrutiny on its software strategy.
Broadcom Inc plans to release its first-quarter fiscal 2026 earnings on March 4, after markets close, followed by a management call at 5 p.m. ET. The stock edged up 0.1% to $331.54 in morning trading. (Stock Titan)
Investors are eyeing the date closely to see if AI-driven chip demand holds steady and if Broadcom can maintain margins while expanding hardware sales to data centers. Back in December, the company flagged a potential gross margin drop of roughly “100 basis points” — that’s one percentage point — as AI revenue takes up a larger share of overall sales. (Reuters)
Broadcom is right at the heart of the AI boom, providing networking silicon and crafting custom chips for major cloud clients. These custom chips, known as ASICs (application-specific integrated circuits), are designed for individual customers, boosting performance but causing demand to fluctuate.
Another key factor is VMware, the software firm Broadcom acquired in 2023, and how Broadcom manages its sales and support via partners. Any shift in that setup could have swift consequences, given VMware powers essential corporate systems.
The Register reported Broadcom informed certain VMware Cloud Service Provider (VCSP) partners—companies that resell VMware software and services—that contracts wouldn’t be renewed after Jan. 26. They were also pushed to close out open sales by March 31. One partner exec described Broadcom as a “bulldozer,” as customers prepare for a smaller pool of authorized providers. (The Register)
TechRadar reported that critics, among them the European cloud trade group CISPE, flagged concerns that a narrower partner roster might drive prices up and limit customer options—especially for businesses aiming to keep workloads with local providers. CISPE’s secretary general claimed regulators essentially gave Broadcom a “blank cheque” following the VMware acquisition. (TechRadar)
U.S. stocks opened on a positive note, with the S&P 500 and Nasdaq, represented by SPY and QQQ, climbing roughly 0.2% and 0.4% respectively. Chip stocks showed uneven moves: Nvidia dropped nearly 1.9%, whereas AMD jumped around 3.2%, and Taiwan Semiconductor added about 1.1%.
Aside from VMware, Broadcom remains viewed by investors as a bellwether for “custom silicon” demand, reflecting efforts by major cloud companies to move away from off-the-shelf AI processors. Broadcom announced plans to develop and roll out OpenAI-designed chips beginning in the second half of 2026. (Reuters)
Traders are set to keep an eye on this week’s earnings from heavy hitters like Advanced Micro Devices on Tuesday and Qualcomm later on, looking for clues about data-center investments and chip demand. (Kiplinger)
Still, the risk factors for Broadcom linger. If customers push back harder than expected on VMware licensing and partner shifts, software growth could stall. A cloud spending slowdown would weigh on the chip business. Plus, rising AI hardware costs might pressure margins, keeping the stock volatile.
Broadcom’s March 4 earnings report and guidance will be the next major trigger. Investors will zero in on updates around AI order momentum, VMware sales, and how margins are shaping up.
