AVGO shares fell 4.15% in pre-market trading as margin pressures and insider selling overshadowed analyst optimism

Shares of Broadcom Inc. (AVGO) fell 4.151% in pre-market trading on January 15, 2026, as concerns over margin pressures and insider selling overshadowed bullish analyst commentary and product launches.

The decline followed lingering worries from the company’s December 11 earnings report, which flagged a slowing margin trajectory and triggered a prior sell-off. Analysts highlighted this as a near-term headwind, despite positive signals such as high price targets from major banks and Bernstein’s reaffirmation of Broadcom’s leadership in AI ASICs. Recent insider transactions, including large-scale share sales by executives and institutional investors, further fueled caution among traders.

Positive momentum from new Wi-Fi product unveilings at CES 2026 and AI-driven supply-chain opportunities for custom silicon remain long-term catalysts. However, immediate investor sentiment appears dominated by profit-taking after a strong 2025 rally and ongoing scrutiny of valuation metrics. Analysts advise monitoring upcoming updates on margin trends, product adoption, and hyperscaler demand for clarity on the stock’s direction.

As the stock continues to consolidate its gains from the prior year, traders are also watching for potential support levels that could dictate whether the recent decline turns into a broader correction or a temporary pullback. The presence of multiple insiders selling large blocks of stock has raised questions about internal confidence and may influence short-term trading strategies. Analysts are particularly focused on how the company’s AI ASICs business performs in Q1 and whether this can offset any near-term margin deterioration.