New York, Jan 28, 2026, 18:16 EST — After-hours
- Broadcom shares ended the session a touch higher and remained steady in after-hours trading.
- Chipmakers surged after new earnings and forecasts signaled growing demand from AI data centers.
- Investors are turning to Big Tech earnings and guidance for clues on spending trends.
Broadcom Inc (AVGO.O) shares saw minimal movement in after-hours trading Wednesday, as chip stocks gained on fresh optimism about expanding AI data center investment. The stock ended regular session up 0.14% at $333.24 and ticked higher to around $333.82 post-close. (Investing)
The modest shift still held weight. Broadcom operates near the core of AI infrastructure — supplying the chips and connectivity that power data centers — and traders watch the stock as a gauge of whether the “AI spend” narrative can sustain lofty valuations.
The macro backdrop has returned to the spotlight. Investors held back from betting heavily on any one stock, despite a better tone in the tech sector, ahead of the Federal Reserve’s remarks and major tech earnings reports after the bell.
Chipmakers surged following upbeat signals from Texas Instruments (TXN.O) and other hardware suppliers, boosted by strong results from chip equipment giant ASML (ASML.AS) and a sharp rise in Seagate (STX.O), Reuters reported. Louise Dudley, a portfolio manager for global equities at Federated Hermes, said “conditions are improving and that they are expanding their growth plans,” while Hargreaves Lansdown analyst Matt Britzman described ASML’s results as “a thumping set of numbers.” (Reuters)
U.S. stocks finished mostly flat following the Fed’s announcement. The S&P 500 dipped under 0.1%, the Dow inched up slightly, and the Nasdaq rose roughly 0.2%, per AP. (AP News)
The Fed kept its benchmark rate steady at 3.50%-3.75% in a 10-2 vote, with Chair Jerome Powell highlighting a “solid economy.” “The economy has once again surprised us with its strength,” Powell said, even as officials maintained wording that inflation remains “somewhat elevated.” (Reuters)
Broadcom is still dealing with the fallout from its recent report. Back in December, the company projected strong revenue but warned margins would take a hit due to a larger share of AI-related sales. CFO Kirsten Spears noted first-quarter gross margins would fall roughly 100 basis points sequentially. CEO Hock Tan highlighted a hefty $73 billion backlog slated to ship over the next 18 months. (Reuters)
That context sheds light on why Broadcom steered clear of the day’s top chip performers. Investors are eager to back firms with transparent near-term order forecasts—and swift to penalize any signs that the AI surge might eat into profits.
The risk scenario is clear-cut. A tighter memory market combined with supply-chain hiccups could squeeze segments of the electronics sector. Any slowdown in cloud capital expenditures would directly impact demand for networking and custom chips inside data centers. Policy risks are still complicated, spanning tariffs and geopolitical tensions.
Signals keep coming quickly. Investors eyed earnings from Meta Platforms (META.O), Microsoft (MSFT.O), and Tesla (TSLA.O) after the bell, searching for clues on how far Big Tech will push AI infrastructure investments in 2026. (Reuters)
Broadcom’s next key event is its quarterly report. The company announced on its recent earnings call that it will release fiscal first-quarter 2026 results after market close on Wednesday, March 4, followed by a webcast. (Investing)
