NEW YORK, Feb 17, 2026, 10:36 a.m. EST — Regular session underway
- Broadcom shares leveled out following an initial dip, with chip stocks still feeling the squeeze.
- Traders sifted through new court filings related to VMware licensing, while keeping an eye on rates ahead of the Fed minutes.
- Broadcom will release its fiscal first-quarter earnings on March 4.
Broadcom stock clawed back most of its early losses Tuesday, with shares finishing down just $0.17 at $325.00—a drop of about 0.1%. Earlier, the stock had been off as much as 2.6%, as traders watched the VMware legal dispute and a lackluster showing for chip names across the board.
Chip stocks took a hit. The iShares Semiconductor ETF slipped roughly 1.5%. Nvidia dropped around 1.2%, AMD tumbled over 4%, and the QQQ ETF, which tracks the Nasdaq, edged down almost 0.9%.
The retreat is adding to wider jitters over AI-exposed trades as U.S. markets reopen after Monday’s holiday. “The markets are taking each sector one-by-one and stress testing their business models to see how resilient they would be to AI disruption,” said Axel Botte, head of market strategy at Ostrum Asset Management. (Reuters)
Software is back in focus for Broadcom. Fresh UK court filings surfaced in Tesco’s ongoing dispute with VMware—now part of Broadcom—and reseller Computacenter, according to Computer Weekly. Dell weighed in, telling the court that renewal terms from a 2021 contract still govern the supply chain. But Broadcom contends that written acceptance was needed for renewals to kick in. At the core: perpetual licences, which grant software rights that don’t expire, though support is usually renewed separately. (Computer Weekly)
Macro risk isn’t off the table, either. The Federal Reserve will release minutes from its January 27-28 meeting at 2:00 p.m. ET this Wednesday—an update that could swing bond yields, and with them, valuations on high-multiple tech stocks. (Federal Reserve)
Investors won’t have to wait long for Broadcom’s next update. The company plans to release its fiscal first-quarter numbers after markets close on March 4, with the earnings call set for 5:00 p.m. ET. (Broadcom Investors)
Investors are keyed in on any new signs of AI-fueled demand—and what that means for margins. Back in December, CFO Kirsten Spears flagged that “first-quarter consolidated gross margin [was] to be down approximately 100 basis points,” or 1 percentage point, and pointed to a heavier AI revenue mix as the main reason. CEO Hock Tan, for his part, cited an AI backlog sitting at $73 billion, projected to ship in the coming 18 months. (Reuters)
Broadcom’s case to investors is built on a blend: custom data center chips and networking hardware, plus VMware’s infrastructure software. But whenever things get bumpy on either front—be it margin complications, clients raising concerns, or lawsuits—the stock reacts.
The courtroom battles could widen or simply linger, raising fresh doubts for large enterprise clients who are already sizing up other options. Then there’s the matter of interest rates: a hawkish takeaway from the Fed minutes might tighten financial conditions and put renewed pressure on tech multiples, regardless of how orders look.
Traders are eyeing whether chip selling expands beyond just the AI names. Early action in Broadcom showed there’s still buying interest—though it’s selective.
Investors now turn to Wednesday’s Fed minutes. After that, Broadcom reports on March 4. The focus: any sign of a change in AI margins, shifts in customer concentration, and VMware renewals on the call.
