Broadcom

Sector Update: Tech Stocks Fall Thursday Afternoon

Tech stocks were lower Thursday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) falling 1.6% and the State Street SPDR S&P Semiconductor ETF (XSD) down 0.7%.The Philadelphia Semiconductor index dropped 2.1%.In sector news, Tesla (TSLA) Chief Executive Elon Musk is set to become the world's first trillionaire following the IPO of SpaceX (SPCX), CNBC reported. Musk's stake in the rocket and satellite communications firm is worth $866.5 billion on paper, CNBC reported, citing the company's prospectus.In corporate news, Broadcom (AVGO) shares fell past 11% after it reported fiscal Q2 results late Wednesday. The company's fiscal Q3 AI revenue outlook likely fell short of investor expectations, while Q2 results were slightly ahead of consensus, RBC said in a note.Meta Platforms' (META) Instagram is rolling out Instagram Plus globally, a new optional subscription tier offering exclusive features for users who want more control and customization. The subscription adds new audience controls, story-engagement insights, and profile-customization options, with the free version unchanged, Instagram said Thursday in a statement. Separately, Meta is considering charging as much as $200 a month for a premium tier of its planned AI agent product, currently known as Hatch, The Information reported. Meta shares rose 1.1%.Snap (SNAP) has acquired spatial augmented reality firm Illumix, a company spokesperson confirmed through email toThursday. Snap shares climbed 4.5%.

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Correction: Sector Update: Tech Stocks Fall Pre-Bell Thursday

(Corrects to reflect that Broadcom shares fell after the company reported fiscal Q2 results.)Technology stocks were falling pre-bell Thursday, with the State Street Technology Select Sector SPDR Fund (XLK) down 2.2% and the State Street SPDR S&P Semiconductor ETF (XSD) 3.2% lower.Broadcom (AVGO) stock was down more than 14% after the company reported fiscal Q2 results.Taiwan Semiconductor Manufacturing (TSM) CEO C.C. Wei said AI-driven demand for advanced chips will continue to outpace the company's supply capacity for years, despite ongoing expansion efforts, multiple media outlets reported. Taiwan Semiconductor shares were down more than 1% premarket.Palantir Technologies (PLTR) entered into agreements with Kirkland & Ellis, McCarthy Building and GNP Seguros for the use of its Artificial Intelligence Platform, or AIP, the company said in separate statements. Palantir Technologies stock was up more than 2% pre-bell.

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Correction: Sector Update: Tech

Sector Update: Tech

Tech stocks were lower Thursday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) falling 1.6% and the State Street SPDR S&P Semiconductor ETF (XSD) down 0.7%.The Philadelphia Semiconductor index dropped 2.1%.In corporate news, Broadcom (AVGO) shares fell past 13% after it reported fiscal Q2 results late Wednesday. The company's fiscal Q3 AI revenue outlook likely fell short of investor expectations, while Q2 results were slightly ahead of consensus, RBC said in a note.

US Markets55d ago

Broadcom's Unchanged AI Outlook Likely Disappointed Investors, UBS Says

Broadcom's (AVGO) decision not to upgrade its 2027 artificial intelligence guidance apparently disappointed investors, especially as the chip designer reported strong semiconductor demand, UBS Securities said in a client note sent Thursday.Broadcom continues to expect AI semiconductor revenue in excess of $100 billion for fiscal 2027, Chief Executive Hock Tan's said during an earnings conference call late Wednesday. For fiscal 2026, Broadcom expects the metric to increase about 180% over the previous year to $56 billion.The company reported stronger-than-expected fiscal second-quarter results, with AI revenue more than doubling amid increased demand for custom accelerators and networking solutions. Broadcom saw bookings for its AI semiconductors exceeding $30 billion in the quarter, Tan told analysts, according to a FactSet transcript.But shares of Broadcom plunged nearly 15% intraday Thursday, trimming its year-to-date gain to about 19%."Orders were very strong, but (Broadcom) didn't raise AI revenue for either (fiscal) 2026 or 2027, (disappointing especially when compared to peers), with the issue being mostly one of supply," UBS analysts Timothy Arcuri and Natalia Winkler wrote.Broadcom's 2027 AI semiconductor revenue guidance is short of UBS' about $135 billion estimate, which the brokerage left unchanged."Ultimately, there is not a ton here to sway our view materially in either direction as new agreements continue to expand custom (application-specific integrated circuit) engagements," Arcuri and Winkler said.The brokerage lowered its calendar year 2027 earnings per share estimate to $23.19 from $23.84, though total revenue is now projected at about $213 billion, compared with its prior forecast of $205 billion.UBS reiterated its buy recommendation on the stock, while lowering the price target to $485 from $490.Price: $408.43, Change: $-70.80, Percent Change: -14.77%

Dow JonesNasdaq CompositeS&P 500$AVGO

Japan55d ago

US Equity Indexes Mixed in Midday Trading as Tech Takes Beating

US equity indexes were mixed in midday trading on Thursday amid a decline in technology shares, government bond yields, and crude oil futures.The Nasdaq Composite fell 0.3% to 26,778.1 in Thursday's midday trading. The Dow Jones Industrial Average jumped 1.7% to 51,530.2, and the S&P 500 rose 0.2% to 7,569.5.All sectors but technology and utilities rose, with healthcare, financials, and communications services topping the gainers.Broadcom (AVGO) shares sank 14%, among the worst performers on the S&P 500 and the Nasdaq.Hezbollah on Thursday rejected the latest ceasefire agreement between Israel and the Lebanese government, demanding a complete Israeli withdrawal from Lebanon as more fighting there hampered efforts to end the Iran war, the Associated Press reported. This comes as the House on Wednesday approved a war powers resolution that would halt US military action against Iran, according to a separate Associated Press report.If the resolution were to pass in the Senate, where 50 of 100 senators have appeared to support it, US President Donald Trump would be required to either withdraw troops from Iran or gain approval from Congress for the war, according to an analysis from CNN. The White House, which has signaled it believes the underlying law is unconstitutional, could try to ignore the resolution, per CNN.Brent crude futures dropped 3% to $94.81, and West Texas Intermediate crude oil futures fell 3.5% to $92.67.

Research56d ago

Macquarie Downgrades Broadcom to Neutral From Outperform, Adjusts PT to $437 From $513

Broadcom's AI Revenue Outlook Falls Short of High Bar, RBC Says

Broadcom's (AVGO) Q3 AI revenue outlook likely fell short of investor expectations, while its Q2 results were slightly ahead of consensus, RBC Capital Markets said in a Thursday note.The report said the company's decision to reiterate and not to raise fiscal 2027 AI outlook was also a surprise, especially given the robust demand backdrop."We do not see any structural issues and surmise that power/data center constraints and conservatism are playing a role," the report said."Whatever the case, we expect the stock to remain range bound given limited near-term upside potential, premium valuation to NVDA, and lack of incremental catalysts," it added.RBC raised its price target to $400 from $360, while reiterating its sector perform rating.Price: $414.54, Change: $-64.70, Percent Change: -13.50%

Broadcom's Fiscal Q2 Shows Continued AI Strength, Guidance Appears Conservative, Morgan Stanley Says

Broadcom (AVGO) delivered "very strong" fiscal Q2 results, and its outlook is likely to remain "conservative" despite continued strength in artificial intelligence-driven growth, Morgan Stanley said in a note Thursday.The bank said the company's AI business grew 30% in April and accelerated to 200% year-over-year growth in July, representing roughly 40% sequential growth. Guidance for about $56 billion of AI revenue this year and "well above" $100 billion next year is impressive and broadly in line with consensus expectations."Further, we think there is upside - the doubling half-over-half implies upside to H2, and the current 'growth trajectory continues' points to higher growth," the firm said, adding that, during the group callback, Broadcom indicated that its outlook for 2027 has improved. However, management declined to provide more specific guidance. The company also suggested that strong growth could extend well into 2028.The bank said that for Broadcom's fiscal 2026, it now forecasts revenue of $106 billion, non-GAAP gross margin of 74.8%, and earnings per share of $11.59, compared with its prior estimates of $105 billion, 74.9%, and $11.42. For fiscal 2027, it projects revenue of $167 billion, non-GAAP gross margin of 70.8%, and EPS of $18.28, versus its prior estimates of $168 billion, 71%, and $17.97.Morgan Stanley raised its price target on Broadcom from $485 to $502 while keeping its overweight rating.Shares of the company fell nearly 15% in the session.Price: $408.52, Change: $-70.71, Percent Change: -14.75%

Broadcom's AI Growth on Track, New Customers Likely to Ramp Deals, BofA Securities Says

Broadcom's (AVGO) fiscal Q2 results and Q3 guidance only modestly exceeded Street expectations, but its AI growth remains on track for about 180% year-over-year in fiscal 2026 and almost 100% in fiscal 2027, BofA Securities said in a note Thursday.Broadcom's visibility in its AI compute program now extends into 2028, with multiple new customers, including Amazon-backed (AMZN) Anthropic, Meta (META), and Open AI expected to ramp purchase agreements over the next few years, according to the note.The company's Software growth outlook of over 30% in fiscal Q3 suggests there are multiple growth vectors within the AI theme, the brokerage said, adding it expects earnings per share to exceed $30 by calendar year 2030, implying a compound annual EPS growth rate of about 40% between 2025 and 2030.However, BofA flagged gross margin pressure as the custom chip mix continues to increase, noting that Broadcom is facing higher competition as clients diversify their suppliers and move away from exclusivity.BofA Securities kept a buy rating on Broadcom and raised the price target to $530 from $450.Shares of Broadcom were down 15% in Thursday trading.Price: $407.18, Change: $-72.05, Percent Change: -15.03%

BofA Securities Raises Broadcom Price Target to $530 From $450 as 'AI Growth on Track', Maintains Buy Rating

Broadcom (AVGO) has an average rating of Buy and mean price target of $505.74, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)Price: $406.19, Change: $-73.04, Percent Change: -15.24%

New Street Adjusts Price Target on Broadcom to $600 From $420, Maintains Buy Rating

Broadcom (AVGO) has an average rating of buy and mean price target of $505.74, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)Price: $410.39, Change: $-68.85, Percent Change: -14.37%

Dow JonesNasdaq CompositeS&P 500$ARM$AVGO$COST$CRWD$LLY$MRVL$MU$RTX

Sectors56d ago

Sector Update: Tech Stocks Fall Pre-Bell Thursday

Technology stocks were falling pre-bell Thursday, with the State Street Technology Select Sector SPDR Fund (XLK) down 2.2% and the State Street SPDR S&P Semiconductor ETF (XSD) 3.2% lower.Broadcom (AVGO) stock was down more than 14% after the company reported fiscal Q2 revenue that missed analysts' expectations.Taiwan Semiconductor Manufacturing (TSM) CEO C.C. Wei said AI-driven demand for advanced chips will continue to outpace the company's supply capacity for years, despite ongoing expansion efforts, multiple media outlets reported. Taiwan Semiconductor shares were down more than 1% premarket.Palantir Technologies (PLTR) entered into agreements with Kirkland & Ellis, McCarthy Building and GNP Seguros for the use of its Artificial Intelligence Platform, or AIP, the company said in separate statements. Palantir Technologies stock was up more than 2% pre-bell.

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Asia Markets56d ago

US Equity Futures Mixed Pre-Bell as Broadcom Falls, Clashes Continue in Middle East

US equity futures were mixed pre-bell Thursday as traders watched tech giant Broadcom's (AVGO) stock drop after the company posted its fiscal Q2 financial results and attacks continued in the Middle East.Dow Jones Industrial Average futures were 0.9% higher, S&P 500 futures were down 0.4%, and Nasdaq futures were 1.2% lower.Broadcom shares were down 15% in premarket activity as the company issued below-consensus guidance for fiscal Q3 AI-chip revenue.Kuwait reported that an Iranian missile and drone strike hit the country's international airport, killing one person and injuring dozens more. Iran claimed that it launched a retaliatory attack on US military bases in Kuwait after an earlier set of airstrikes by US forces.Traders also digested the latest round of earnings, with CrowdStrike (CRWD) posting higher fiscal Q1 adjusted earnings and revenue.Oil prices were lower, with front-month global benchmark North Sea Brent crude down 3% at $94.89 per barrel and US West Texas Intermediate crude 3.2% lower at $92.97 per barrel.The weekly jobless claims bulletin, released at 8:30 am ET, showed 225,000 new unemployment claims for the week ended May 2, compared with the downwardly revised figure of 212,000 in the prior week, and it came in above the 215,000 expected, according to estimates compiled by Bloomberg. Q1 nonfarm productivity increased at a 0.3% annual rate, below forecasts for 0.4%, while unit labor costs increased 1.8%, compared with the 2.4% expected.Federal Reserve Richmond President Thomas Barkin and San Francisco President Mary Daly are slated to speak on Thursday.In other world markets, Japan's Nikkei closed 1.4% lower, Hong Kong's Hang Seng ended 1.5% lower, and China's Shanghai Composite finished 0.6% lower. Meanwhile, the UK's FTSE 100 was down 0.2%, and Germany's DAX index was 0.6% higher in Europe's early afternoon session.In equities, CrowdStrike stock was down 10% after the company reported its fiscal Q1 financial results. ARM (ARM), Micron Technology (MU), and Marvell Technology (MRVL) shares were all down as part of a broader stock sell-off in the semiconductor industry. ARM shares fell 6%, Micron stock was down 6.4%, and Marvell shares dropped 5.9%.On the winning side, Eli Lilly (LLY) was up 1.3% after Ascidian Therapeutics said the company will receive exclusive, target-specific rights to Ascidian's RNA exon editing technology for undisclosed kidney disease targets in exchange for up to $1.9 billion under a new research partnership and licensing agreement. Costco Wholesale (COST) shares rose 2.3% after the company reported net sales of $24.01 billion for May, up from $20.97 billion a year earlier. RTX (RTX) stock was up 2.2% after the company said that its Raytheon unit was awarded a $515 million contract from the US Navy for the SPY-6 family of radars.

Sectors56d ago

Sector Update: Tech

Technology stocks were falling pre-bell Thursday, with the State Street Technology Select Sector SPDR Fund (XLK) down 2.1% and the State Street SPDR S&P Semiconductor ETF (XSD) 3.2% lower.Broadcom (AVGO) stock was down more than 14% after the company reported fiscal Q2 revenue that missed analysts' expectations.