New York, March 2, 2026, 17:01 EST — After-hours trading underway.
Broadcom Inc (AVGO) edged down 0.3% to $318.82 during after-hours trading on Monday, following the 4 p.m. bell. Earlier, shares moved between a low of $314.44 and a high of $319.96.
Broadcom is set to deliver its fiscal first-quarter earnings on March 4. Investors are zeroed in on two things: how AI infrastructure demand is shaping up, and just how much VMware is adding to the mix. The company itself has flagged $19.1 billion in revenue for the quarter, according to Zacks, but the consensus estimate edges that figure up a notch. 1
The distinction is key, with investors looking to parse out consistent AI infrastructure investment from quick, one-off spending spikes. Broadcom straddles both camps: it’s plugged into custom silicon and networking gear, while also pushing its enterprise software business.
RBC Capital Markets lowered its price target for the stock to $340 from $370, sticking with a “Sector Perform” rating. Analyst Srini Pajjuri said he’s looking for a “beat/raise” driven by robust TPU and networking demand — shorthand for tensor processing units, a core AI chip, and supporting data-center gear. 2
Broadcom rolled out VMware Telco Cloud Platform 9 on Monday at Mobile World Congress in Barcelona. The company estimates the new private-cloud offering could slash five-year total cost of ownership by around 40%, while also lowering power consumption between 25% and 30% thanks to better server utilization. 3
“Hardware costs are spiraling out of control,” Paul Turner, chief product officer for Broadcom’s VMware Cloud Foundation division, said. BT’s Chief Networks Officer Greg McCall, in the same statement, described telecom cloud infrastructure as “paramount.” Nokia executive Kal De added that the integration backs operators’ multi-cloud strategies. 4
“Sovereign cloud” basically means locking data and infrastructure inside a country’s borders—a selling point that’s resonating as telecoms run into tougher regulations and an expanding list of tasks. Broadcom is out pitching telcos on a unified stack meant to handle both network functions and next-gen AI services.
Now traders want to know if Broadcom can deliver growth without sacrificing margins. Investors have zeroed in on the risk that custom AI silicon could ramp up more quickly than other segments but drag on profitability, or that the software story hinges on challenging licensing terms.
Nvidia is doubling down on AI hardware, putting $2 billion apiece into photonics suppliers Lumentum and Coherent as it chases more powerful AI data-center chips. The move highlights just how fast tech vendors are making big commitments—often with the same clients Broadcom is targeting. 5
But that setup isn’t one-way. Cautious guidance, or signs that demand from major customers is clustered and unpredictable, can send the stock swinging fast—either way, especially around a headline event.
Broadcom is due to report on March 4, and investors are keen to hear more about how AI demand is holding up, as well as what’s next for VMware.
