New York, March 3, 2026, 16:39 (ET) — After-hours
- Broadcom dropped 1.6% during regular trading, with shares barely moving in after-hours action.
- RBC trimmed its price target to $340 from $370 but stuck with its Sector Perform rating.
- Broadcom’s earnings and guidance, set for March 4, have investors on edge.
Broadcom (AVGO) dropped 1.6% on Tuesday, ending the day at $313.84. After hours, shares hovered at $313.40, off another 0.1%. Results land March 4, with Street estimates pointing to roughly $19.21 billion in revenue and $2.02 per share in earnings.
Timing is crucial here. Broadcom finds itself squarely in the crosshairs of the market’s ongoing debate: just how long will this surge in AI infrastructure spending last? The question now is whether robust hardware demand is enough to counter new doubts about the software side. With numbers this tight and guidance leaning cautious, the stock can swing sharply.
Risk appetite remains scarce. On Tuesday, U.S. stocks slipped, investors taking stock of escalating tensions with Iran. Oil surged—stirring fresh inflation fears and weighing on tech shares.
RBC Capital cut its Broadcom price target to $340 from $370, sticking with a Sector Perform rating. Analyst Srini Pajjuri flagged solid demand for TPUs and networking equipment in the short term, but sees reasons for caution further out. “We expect a beat/raise driven by strong TPU/Networking demand,” Pajjuri said, highlighting the company’s position in custom AI accelerators and data center networking. Investing.com
Broadcom rolled out its VMware Telco Cloud Platform 9 preview at Mobile World Congress in Barcelona this week, targeting telecoms with a promise of lower costs via private-cloud stacks. “Hardware costs are spiraling out of control,” said Paul Turner, chief product officer for the VMware Cloud Foundation division. The company is highlighting reduced total cost of ownership, or “TCO,” as part of its pitch. GlobeNewswire
Broadcom disclosed in a separate filing that board member Eddy W. Hartenstein plans to retire at the company’s 2026 annual meeting, following its governance rules. The company specified there was no disagreement behind Hartenstein’s decision.
Investors have a clear focus for Wednesday: they want evidence that demand for AI-driven custom chips and networking gear continues to accelerate. As for VMware, the key question is whether its software division can maintain consistent growth—without weighing down overall margins or slowing the pace. There’s also attention on how management addresses backlog and customer concentration during its 2026 outlook.
Still, there’s a risk here. Should Broadcom suggest AI orders might cool later this year, or flag bumpier demand from a handful of major clients, the stock could see its valuation shrink fast — not least with geopolitics already nudging investors toward cash and defensive names.
Broadcom will release its results after Wednesday’s closing bell on March 4, with the earnings call lined up for 5:00 p.m. ET.
