Gotrade Daily: AVGO Q2 Earnings Tonight, AI Chips at Highs
Gotrade Research Desk
Reviewed by Gotrade Internal Analyst
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The S&P 500 just crossed 7,600 for the first time. Tonight, Broadcom's Q2 print decides if AI chip leadership keeps running.
The S&P 500 closed at 7,599.96 on Tuesday, a fresh record close, up 0.26% on the day. Nasdaq added 0.42% to 27,086.81. Small caps joined in, with the Russell 2000 up 0.90%, a sign that strength is broadening beyond mega-cap tech.
The story driving the move is still AI semis. Marvell (MRVL) hit an all-time high yesterday on a fresh custom-silicon narrative that lifted the name into trillion-dollar potential territory. Tonight, Broadcom (AVGO) reports after the bell, and the AI semis guide is the number that matters most for the group.
If AVGO delivers on the roughly $10.7B AI semis number Wall Street expects, the rally has fresh fuel and the entire AI chip complex gets re-rated higher. If it disappoints, every name riding the AI chip trade gets re-tested at once.
Add/Hold: proxy for the AI chip reaction after the AVGO print.
Tonight's Catalysts
Broadcom's print is the headline event. Street looks for roughly $22.08B in revenue (+47% YoY) and EPS near $2.39. The real focus is AI semis, where consensus sits near $10.7B versus $8.4B last quarter, which would mark roughly +140% YoY growth in that segment.
Three sub-lines matter inside the print. First, the AI switch backlog, last flagged at $10B-plus. Second, networking mix, which sits near 40% of AI revenue. Third, VMware integration margin, where any progress reads through to the long-term software profile.
CrowdStrike (CRWD) also reports post-market. ARR growth and the post-2024 outage recovery narrative are the swing factors there.
Futures point to a steady open after Tuesday's record close, with semis leading the early bid. Meta (META) is catching attention after Arete upgraded the stock to Buy with a $735 price target, lifted from $614. That is a meaningful sentiment shift on a name that already runs heavy in growth portfolios.
Macro Note 📝
Oil softened on Tuesday with WTI near $91 and Brent near $95. US-Iran tension remains the counter-narrative risk to a clean AI rally, so any Hormuz headlines could shift sentiment fast.
Tonight is a clean setup. AI semis are at record highs, Broadcom's print is the single biggest test of that leadership, and Marvell's all-time high yesterday raised the bar going in.
If you own AI chip names, this is the print that decides the next leg. If you don't, AVGO's guide tells you whether the trade still has room to run from here.
What stocks are you watching tonight? Check your watchlist on Gotrade now!
Gotrade is the trading name of Gotrade Securities Inc., which is registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
