What happened: Broadcom (AVGO) stock edged higher to touch a new intraday all-time high on Wednesday ahead of the chipmaker’s fiscal second quarter results due after the closing bell.
By the numbers: Wall Street analysts expect the company to post adjusted earnings of $2.39 per share on revenue of $22.13 billion. The company reported earnings per share of $1.58 per share on revenue of $15 billion for the same three-month period a year ago.
Broadcom is expected to benefit from hyperscaler artificial intelligence spending this year, which is estimated to reach $650 billion. The custom chipmaker’s customers include Google (GOOG, GOOGL), Meta (META), and AI developers Anthropic (ANTH.PVT) and OpenAI (OPAI.PVT).
“Broadcom is priced for perfection going into today, and the bull case is that it might actually deliver perfection,” Mark Malek, chief investment officer at Siebert Financial, wrote in a note on Wednesday.
“The growth has been enormous, they’ve beaten their own guidance seven quarters running, and the backlog gives them real visibility,” he added.
What else you should know: Even if Broadcom beats expectations and raises guidance on Wednesday, the question is whether that upside is already priced in. The stock is already up 37% year to date.
Semiconductor stocks have led the broader market rally to all-time highs this year amid an AI data center boom and infrastructure build-out.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: finance.yahoo.com
