New York, Jan 23, 2026, 16:30 EST — After-hours
- Broadcom shares dropped roughly 1.7% on Friday, slipping to $320.05 in after-hours trading.
- Chip stocks showed mixed moves following Intel’s bleak forecast, extending pressure on the sector heading into next week
- The U.S. government has struck a procurement deal granting federal agencies significant discounts on Broadcom’s VMware software, valid through May 2027
Broadcom shares (AVGO.O) dropped $5.44, or 1.7%, closing at $320.05 on Friday. During the session, the stock swung between $314.19 and $326.90.
Broadcom slid alongside a semiconductor sector that stumbled after Intel’s forecast reignited concerns over short-term demand and supply issues in data-center chips. “We’re feeling pretty good, but mindful we might have some significant twists and turns,” said Jason Blackwell, chief investment strategist at Focus Partners Wealth, as investors brace for a week packed with macro data and tech earnings. 1
Broadcom is right at the heart of the AI expansion. It provides the networking chips that link servers in massive data centers and offers software for private-cloud setups through VMware. So when doubts arise about the next wave of spending, Broadcom often gets caught in the selloff.
On Jan. 21, the U.S. General Services Administration announced a new OneGov deal with Broadcom, offering federal agencies discounts up to 64% on select VMware products until May 2027. “GSA is moving fast to deliver acquisition deals that save taxpayers money,” said GSA Administrator Ed Forst. Broadcom CEO Hock Tan described the agreement as a “strategic partnership” focused on improving purchasing and “optimizing value” for agencies. 2
OneGov is a governmentwide purchasing framework designed to standardize procurement across agencies. The deal focuses on VMware products used for app development and security. “Zero Trust” refers to a security model that treats every user and device as untrusted by default, even within the network perimeter.
Traders are now watching to see if Friday’s dip in chip stocks signals a wider pullback in AI hardware or just a brief pause following Intel’s announcement. Broadcom benefits from company-specific software backing, yet its shares continue to move daily as a proxy for data-center demand.
Yet the flip side is clear. Should investors sense a slowdown in AI infrastructure spending or see pricing pressure widen across enterprise software as buyers tighten their belts, Broadcom could face another setback—even if no new company updates emerge.
Next week puts that narrative to the test. Investors await earnings from megacap tech giants fueling AI investments: Microsoft, Apple, Meta, Tesla, and Samsung. 3
The next major milestone is the Federal Reserve’s policy meeting on Jan. 27–28, with the rate decision and press conference set for Jan. 28. This event often rattles high-valuation tech and chip stocks fast. 4
