Gotrade Research Desk
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The S&P 500 index exceeded 7,600 for the first time. Tonight, Broadcom’s Q2 print issue will determine whether its AI chip leadership continues.
On Tuesday, the S&P 500 index rose 0.26% to close at 7,599.96, a new record. The Nasdaq rose 0.42% to 27,086.81. Small-cap stocks joined in, with the Russell 2000 up 0.90%, a sign of strength extending beyond mega-cap tech.
AI seminars remain the driving force behind this movement. Marvel (MRVL) Yesterday, it hit an all-time high on a new custom silicon saga that propelled the company’s name into multi-trillion dollar potential territory. tonight, Broadcom (AVGO) There is a report after the bell, and the AI semi-guide is the most important number for the group.
If AVGO can hit the roughly $10.7 billion AI semiconductor figure that Wall Street expects, it would add new fuel to the rally and further boost valuations across the AI chip complex. If it does not live up to expectations, all names participating in AI chip trading will be immediately retested.
tonight’s watchlist
Also read: Software ETF IGV rebounds 40%, VYM vs. HDV, Walmart + Edge
| stock | movement | what to see |
|---|---|---|
| AVGO | Tonight’s After Market Report | check: Consensus revenue of $22 billion (+47% YoY), AI Semiconductor guides $10.7 billion. |
| MRVL | Yesterday we hit ATH on the story of custom silicon | clock: Follow-through after a potential multi-trillion dollar rally. |
| NVDA | Morgan Stanley raised PT to $206 | Add/Hold: Proxy for AI chip reaction after AVGO printing. |
tonight’s catalyst
Broadcom print is a featured event. The Street is expecting revenue of approximately $22.08 billion (+47% year-over-year) and EPS of around $2.39. The real focus will be on AI semiconductors, with consensus at nearly $10.7 billion versus $8.4 billion in the previous quarter, which will result in roughly +140% year-over-year growth in this segment.
Three sublines are important within the print. First, there’s the AI Switch backlog, which was last flagged as over $10 billion. The second is the networking mix, which accounts for nearly 40% of AI revenue. Third is the VMware integration margin, where progress is reflected in the long-term software profile.
Crowd Strike (CRWD) Post-marketing reports are also included. ARR growth and post-stop recovery story in 2024 will be variables.
Also read: Jakarta stocks plummet 5.2%, Rupiah hits record low
Pre-market pulse 📊
After Tuesday’s record close, futures are showing a steady opening, with the semifinals leading the early bids. Meta (META) The stock is attracting attention after Arete raised its price target from $614 to $735 and upgraded the stock to “buy.” This is a meaningful change in sentiment for a name that already plays a big role in growth portfolios.
Macro memo 📝
Oil was weaker on Tuesday, with WTI near $91 and Brent near $95. Headlines about Hormuz can quickly shift sentiment, as US-Iran tensions remain a paradoxical risk to AI’s clean gatherings.
Also read: Oil prices rise to $97 after US attack on Iran’s Qeshm Island
Clean setup tonight. AI cicadas are at record highs, Broadcom’s print is the single biggest test of its leadership, and Marvel’s all-time high yesterday raised the bar for entry.
If you own the AI chip name, this is the print that determines the next leg. If not, AVGO’s guide will show you if there is still room to execute the trade from here.
Which stocks are you watching tonight? Check out your watchlist on Gotrade today!
Disclaimer
Gotrade is a trading name of Gotrade Securities Inc., registered and regulated 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.
