Broadcom Inc

Ahead of Nvidia's earnings report, Adam Curran, portfolio manager of the Yorkville-advised Truth Social God Bless America ETF, says the chipmaker's dominance doesn't hinge on which AI leader prevails. Curran argues that Nvidia, the fund's largest holding at 7.14%, benefits from demand for computing infrastructure across the industry, calling it the 'picks and shovels' play for AI. He also highlights Broadcom as another beneficiary and MARA Holdings as a wild card, noting Bitcoin miners' infrastructure could be repurposed for AI. The main risk, he says, is if companies fail to generate returns on their AI investments, prompting investors to flee.

Moor Insights & Strategy founder Patrick Moorhead predicts Nvidia's AI data center market share could fall from 90% to roughly 70% over the next two years, as the market more than doubles annually. Moorhead identifies Google's TPU as the top taker of unit share, benefiting companies like Broadcom and Marvell, followed by Amazon's Trainium, which underpinned Anthropic's model development. He also expects AMD to gain unit share with its new scale-up architecture, which is more similar to Nvidia's than previous designs. Regarding Bloomberg's report that OpenAI's custom chips with Broadcom outperformed Nvidia's current lineup in testing, Moorhead says he is not surprised, noting the power and performance of non-GPU architectures, but he emphasizes that GPUs offer more flexibility and longevity, while custom designs require frequent updates and cost between 200 and 500 million dollars each. Despite these challenges, Moorhead believes Nvidia's revenue won't be significantly impacted because the market is growing so fast, and in the long term, it will remain primarily a GPU world with custom inference chips for those who roll their own software.

Rackspace Technology has launched Rackspace Cloud, a fully managed multitenant platform built on Broadcom's VMware Cloud Foundation 9.1. The platform targets regulated industries that need modern cloud features such as Kubernetes and AI workloads while keeping governance and compliance controls. This is among the first commercial uses of VMware Cloud Foundation 9.1 in a fully managed multitenant setup, highlighting early commercial traction after Broadcom's VMware acquisition. Broadcom is a US based semiconductor and infrastructure software company with a market cap of about US$1.8t.

Broadcom and Micron Technology delivered blockbuster quarters driven by the shift from AI training to inference and agentic workloads. Broadcom's fiscal Q2 revenue hit $22.2 billion, up 48% year-on-year, with AI semiconductor revenue of $10.8 billion, up 143%, and AI semiconductor orders exceeded $30 billion in the quarter. Micron's fiscal Q3 revenue reached $41.5 billion with a consolidated gross margin of 84.9% and non-GAAP EPS of $25.11, while DRAM prices rose in the low 60s percentage range sequentially. Micron secured roughly $100 billion in contracted memory revenue through five-year take-or-pay agreements, and its HBM4 is ramping twice as fast as its predecessor. Broadcom guided fiscal 2027 AI silicon revenue to be in excess of $100 billion, while Micron's Q4 guidance calls for $50 billion in revenue and roughly 86% gross margin.

BJ's Wholesale Club Holdings, Ross Stores, Flowers Foods, and Broadcom all moved on company-specific news. BJ's Wholesale Club Holdings jumped 5.6% after reporting second-quarter fiscal 2026 earnings of $1.36 per share, beating the Zacks Consensus Estimate of $1.16 per share. Ross Stores gained 4.4% after reporting second-quarter fiscal 2026 earnings of $2.06 per share, surpassing the Zacks Consensus Estimate of $1.93 per share. Flowers Foods declined 2.1% after reporting second-quarter fiscal 2026 earnings of $0.21 per share, missing the Zacks Consensus Estimate of $0.23 per share. Broadcom gained 1.2% following a report that the company plans to raise more than $60 billion in debt to fund a deal supporting Anthropic.

Nvidia Corp. is facing increasing competition from rivals, startups, and its own biggest customers as the AI chip market is poised to cross $1 trillion in revenue. Amazon.com Inc. CEO Andy Jassy said in July that if Amazon's semiconductor operation were a standalone business, it would generate annual revenue of more than $25 billion, with sales growing by a percentage in the triple digits. Advanced Micro Devices Inc. saw its data center revenue more than double last quarter to $6.7 billion, while Broadcom Inc. expects to sell $56 billion of AI chips this year. Meanwhile, 150 companies are working on more than 200 different AI semiconductor designs, according to Jon Peddie Research, and AI labs like OpenAI and Anthropic are developing their own chips. Nvidia's earnings report on Wednesday is expected to show revenue nearly doubled last quarter to $92 billion, but some customers have been told that prices of servers containing its AI chips are going up more than 15%.

Nvidia has agreed to provide more than $100B in credit support to backstop a massive new OpenAI data center campus in Pike County, Ohio. The project is being developed, owned, and operated by SB Energy, a SoftBank Group subsidiary, with OpenAI signing a 20-year lease as the anchor tenant, according to a report by the Financial Times. As part of the transaction, Nvidia will also make a $1.5B direct equity investment in SB Energy. Under the terms of the deal, Nvidia will serve as the exclusive supplier of AI computing systems for the site, potentially generating $150B to $200B in hardware revenue as the facility expands to house over 1M Nvidia chips. Separately, Broadcom is reportedly engaged in discussions with Blackstone and Apollo Global Management to raise more than $60B in debt in a deal that will benefit Anthropic, and Micron Technology showed off its new U.S.-based Micron Research Labs backed by a $10B investment.

Broadcom Inc. shares rose 1.21% to $368.45, outperforming the S&P 500's 0.44% gain. The chipmaker is scheduled to report earnings on September 2, 2026, with analysts forecasting EPS of $3.22, up 90.53% year over year, and revenue of $29.47 billion, up 84.74%. For the full year, consensus estimates call for EPS of $11.74 and revenue of $106.07 billion, representing increases of 72.14% and 66.03%, respectively. Broadcom currently trades at a forward P/E of 31.02, below the industry average of 36.93, and carries a Zacks Rank of 3, or Hold.

Broadcom is rated a buy with a 12-month price target of $403, implying 10.65% upside from its current price of $364.50. The company reported fiscal Q2 2026 revenue of $22.19 billion, up 47.87% year over year, with AI semiconductor revenue of $10.80 billion, up 143%, and guided Q3 revenue to approximately $29.4 billion, up 84% year over year. Management expects $56 billion of fiscal 2026 AI revenue and more than $100 billion in fiscal 2027, with CEO Hock Tan calling demand for XPUs and networking insatiable. Risks include customer concentration among a handful of hyperscalers, expected gross margin compression to approximately 74%, and net insider selling.

Several companies made notable premarket moves on Friday. BJ's Wholesale shares ticked slightly higher after the retailer reported second-quarter earnings of $1.36 per share excluding items on revenue of $6.09 billion, beating FactSet estimates of $1.17 per share on $5.97 billion in revenue, and raised its full-year EPS guidance to $4.60 to $4.80 from $4.40 to $4.60. Ross Stores jumped over 8% after posting better-than-expected second-quarter results and issuing third-quarter earnings guidance above estimates. Crypto-related stocks including Robinhood, Coinbase, and Strategy rose at least 4.5% as bitcoin headed for a weekly gain of more than 20%, boosted by the White House hosting crypto leaders and urging Congress to pass the Clarity Act. Broadcom gained over 1% after Bloomberg News reported the semiconductor maker plans to raise over $60 billion in debt to support Anthropic.

Broadcom Inc. is negotiating with a group of lenders to secure more than $60 billion in debt financing for an artificial intelligence chip deal that would support Anthropic PBC and other companies, Bloomberg reported Thursday citing people familiar with the matter. The financing package, which remains under discussion, may include an additional junior debt tranche of approximately $30 billion, bringing the overall financing to as much as $100 billion. Broadcom would reportedly guarantee part of the senior-secured tranche under the proposed arrangement, which could total between $60 billion and $70 billion. Blackstone Inc. and Apollo Global Management are in discussions with Broadcom to join the chip financing, building on a partnership the three companies formed in June to fund computing infrastructure. The deal would provide companies including Anthropic with access to chips and other essential AI infrastructure, and the structure could resemble the $35 billion debt agreement that launched the group's AI XPV partnership.

Taiwan Semiconductor Manufacturing carries a buy rating and a $539.60 price target from 24/7 Wall St., implying 30.52% upside over the next 12 months. The firm cites visibility on demand through 2029, with capacity effectively sold out through that year. TSMC reported second-quarter 2026 revenue of $40.2 billion, EPS of $4.31 beating consensus of $3.89, and gross margin of 67.7%. Management guided third-quarter revenue to $44.6 to $45.8 billion and announced an additional $100 billion Arizona investment for 2nm and below capacity. NVIDIA has $119 billion in supply commitments pre-booking TSMC capacity, while Broadcom's AI chip revenue surged over 200% year over year, with both companies fabricating at TSMC.

Broadcom has beaten the market in 12 of the past 13 years, and its stock could do it again in 2026. The company's close relationships with hyperscalers like Amazon, Alphabet, and Microsoft position it to benefit from rising AI spending. CEO Hock Tan told analysts that revenue from Broadcom's AI chips could top $100 billion next year. Broadcom's revenue rose 48% in its most recent quarter, and its stock trades at a forward P/E of 21 and a PEG ratio under 0.50.

AI networking stocks surged on Monday after a Mizuho research note pointed to accelerating demand across the AI high-speed interconnect layer. Marvell Technology rose 7.8% to $239.33, Credo Technology gained 8.3% to $281.48, and Ciena climbed 5.18% to $451. The note, published Sunday, cited a strong VR200 ramp as positive for near-package optics, co-packaged optics, and NVIDIA's Spectrum-X, and flagged Dell, Credo, NVIDIA, Broadcom, and Lumentum as 2027 earnings beneficiaries. Mizuho also projected CoWoS advanced packaging capacity growth of more than 75% in 2027, which would ease supply constraints on Marvell's custom AI silicon programs. Recent 13F filings showed heavy institutional interest, including Gavin Baker's Atreides Management holding concentrated positions across Credo, Ciena, and Astera Labs.

Morgan Stanley says the artificial-intelligence boom is entering a more capital-intensive phase, raising a new question for investors in Microsoft, Alphabet, Amazon, Meta Platforms and the companies supplying their infrastructure: not whether AI spending will continue, but how increasingly enormous investment plans will be financed. The bank expects combined capital expenditures at the four hyperscalers to jump 57% in 2027 from 2026, as companies race to add data centers, computing capacity and power infrastructure. Morgan Stanley believes the economics can justify that spending, estimating AI investments can generate returns on invested capital above 25%, but the problem is timing. AI infrastructure requires cash upfront, while revenue and free cash flow arrive later, and Morgan Stanley's 2027 free-cash-flow estimates for the four hyperscalers have continued falling, creating what the bank sees as a widening financing gap. Credit markets are already reacting, with hyperscaler debt spreads widening roughly 35 basis points for higher-quality borrowers and about 50 basis points for lower-rated companies at their summer peak, though spreads have narrowed sharply over the past two weeks. Cash-rich hyperscalers and suppliers including Nvidia and Broadcom have considerably more financing flexibility, while companies further down the credit spectrum, including Oracle, data-center developers, REITs and former bitcoin miners, could become more sensitive to rising borrowing costs. The financing wave is also expanding beyond buildings, as Morgan Stanley expects private capital and asset-backed structures to increasingly fund servers, chips and energy infrastructure, pointing to Nvidia's compute-infrastructure financing platform and a $35 billion Broadcom-backed chip financing transaction.

Broadcom shares have fallen 8.13% in a week to $392.99, leaving the stock 34% below the Wall Street average price target of $527.88. BNP Paribas Exane holds the Street-high target of $675, implying roughly 72% upside, while about 92% of covering analysts rate the stock Buy or Strong Buy with zero Sells. The company posted AI semiconductor revenue of $10.8 billion, up 143% year over year, and guided the current quarter to $16 billion, with management citing demand visibility through 2028. Broadcom's Q2 fiscal 2026 revenue rose 47.9% year over year and non-GAAP EPS of $2.44 beat the $2.40 estimate, marking eight consecutive EPS beats. The stock is up 13.97% year to date, roughly matching the S&P 500's 13.85% gain, while AMD and Marvell have surged over 140% and 160% respectively this year.

Big Tech's AI spending race accelerated this earnings season, with Microsoft, Amazon, Alphabet and Meta reporting roughly $170 billion in capital expenditures. Microsoft reported $41 billion of CapEx, Alphabet spent $44.9 billion and raised its full-year CapEx forecast, Meta deployed $31.1 billion while maintaining its outlook, and Amazon led the group with $54.2 billion in property and equipment purchases. The spending is showing returns, with Microsoft monetizing enterprise AI, Amazon and Alphabet benefiting from accelerating cloud demand, and Meta's AI-enhanced advertising business helping fund its infrastructure buildout. Vertiv's Q2 revenue grew 24% to $3.3 billion and it raised its full-year outlook, while Broadcom's Q2 revenue soared 48% to $22.2 billion and AI semiconductor revenue surged 143% year-over-year to $10.8 billion, with Broadcom expecting AI revenue to reach $16 billion next quarter.

Nvidia and Broadcom are tapping debt and private capital markets to fund the AI infrastructure boom, with Wolfe Research warning that the financing structures could create longer-term risks. Nvidia has signed memorandums of understanding with Apollo Global Management, Blackstone, BlackRock, Brookfield Asset Management, Goldman Sachs and KKR to establish financing platforms for its customers, and Wolfe estimates that if Nvidia captures about 70% of spending in a Nvidia-powered data center, the deployment may translate into approximately $350 billion of Nvidia revenue, while CEO Jensen Huang said the company has the option to backstop up to $125 billion, or 25% of the potential deals. Broadcom has partnered with Apollo and Blackstone for a $35 billion institutional financing initiative to establish an AI XPV Platform enabling more than 20 gigawatts in compute capacity using Broadcom's XPUs and networking solutions for frontier AI labs including Anthropic and OpenAI through 2028, which Wolfe estimates could imply about $140-200 billion in revenue from the two, compared to $245 billion of total consensus revenue for Broadcom in 2028, while Broadcom is also backing an initial $30 billion in residual-value guarantees and credit support on senior A1 and A2 notes. Wolfe Research notes that backstops and residual-value guarantees assume risk tied to the future value of AI infrastructure, creating contingent liabilities that may become detrimental if the AI sector faces overcapacity, though the firm does not expect supply to exceed demand soon due to physical constraints in creating clean room capacity, with TSMC and DRAM supply likely to remain tight through 2028.

Broadcom Inc. strengthened its market position through major customer commitments and strategic agreements, according to Baron Opportunity Fund's second quarter 2026 investor letter. The fund highlighted that Alphabet signaled higher and more durable capital expenditures, with a multi-year agreement extending through 2031 that validates Broadcom's entrenched position within the Google silicon ecosystem. Anthropic is planning significantly larger compute requirements, OpenAI taped out its first inference chip codenamed Jalapeno in a record nine months and appears set to build 10 gigawatts of AI infrastructure using custom silicon this decade, and Apple signed a multi-year agreement spanning multiple product lines including custom silicon across multiple generations of Apple products. Broadcom shares closed at $416.05 on August 12, 2026, reflecting a market capitalization of $1.98 trillion, with a one-month return of 11.11% and a 52-week gain of 33.68%. The fund maintains its conviction in Broadcom, citing its unique position to capture a dominant share of the custom silicon market and a path to becoming one of the largest technology companies in the world.

Apple CEO Tim Cook warned of a "100-year flood" in memory chip pricing on his last earnings call, citing exponential increases driven by AI data center demand. In the fiscal third quarter ended June 27, Apple's gross margin was 50.1%, including a two-percentage-point tariff benefit, and CFO Kevan Parekh said more than 100% of the margin change was explained by memory costs. Management expects fourth-quarter gross margin of 47% to 48%, with a one percentage point tariff benefit, and plans price increases on iPhones and other devices to offset rising costs. iPhone sales rose 22% year over year in the third quarter, but growth is expected to slow to the mid-teens in the fourth quarter due to supply constraints. Apple struck a multi-year agreement with Broadcom in the third quarter to secure a stable supply of certain components.