Tonight’s key data
Focus on two areas
Labor market
AI
1: ADP employment data
You can think of it as a rehearsal ahead of this week’s Non-Farm Payrolls.
It can help us see whether the U.S. labor market is continuing to cool down, or whether it’s regaining strength.
If employment is clearly stronger than expected, it may further push up yields, reinforce expectations of high interest rates, and put pressure on growth stocks.
If employment is clearly weaker, the market may shift again toward trading a slowdown in the economy, which could lower yields and provide some support for tech stocks.
2: Broadcom earnings report
Its importance may be higher than most of tonight’s macro data.
After the close on September 2, it will be released.
It will directly confirm whether AI capital expenditures can continue their rapid growth.
Key points to watch:
1) Whether AI revenue can meet market expectations; the core figure is around $16 billion.
2) The AI revenue guidance for 2027—this is very important. If management can provide more proactive long-term order and revenue expectations, it would directly reinforce the logic that the entire AI infrastructure cycle can continue expanding.
3) The custom chip business. One of Broadcom’s key highlights is custom AI chips. Pay close attention to the needs of several major customers, and whether future custom chip orders continue to grow. In particular, large cloud providers’ capital expenditures on in-house AI chips may directly affect Broadcom’s growth trajectory over the next few years.
4) The earnings report’s impact on the entire AI industry chain. Broadcom is a core company in the first layer of infrastructure, but it also connects to second-layer platform companies. If the report is clearly above expectations, it could revive sentiment across:
Nvidia, the chip and semiconductor sector, networking equipment, AI servers, optical communications, and the storage supply chain.
Especially now, when the market is being pressured by rising U.S. Treasury yields. If Broadcom provides very strong AI guidance, then AI fundamentals may regain control of market pricing power.
$AVGO
Focus on two areas
Labor market
AI
1: ADP employment data
You can think of it as a rehearsal ahead of this week’s Non-Farm Payrolls.
It can help us see whether the U.S. labor market is continuing to cool down, or whether it’s regaining strength.
If employment is clearly stronger than expected, it may further push up yields, reinforce expectations of high interest rates, and put pressure on growth stocks.
If employment is clearly weaker, the market may shift again toward trading a slowdown in the economy, which could lower yields and provide some support for tech stocks.
2: Broadcom earnings report
Its importance may be higher than most of tonight’s macro data.
After the close on September 2, it will be released.
It will directly confirm whether AI capital expenditures can continue their rapid growth.
Key points to watch:
1) Whether AI revenue can meet market expectations; the core figure is around $16 billion.
2) The AI revenue guidance for 2027—this is very important. If management can provide more proactive long-term order and revenue expectations, it would directly reinforce the logic that the entire AI infrastructure cycle can continue expanding.
3) The custom chip business. One of Broadcom’s key highlights is custom AI chips. Pay close attention to the needs of several major customers, and whether future custom chip orders continue to grow. In particular, large cloud providers’ capital expenditures on in-house AI chips may directly affect Broadcom’s growth trajectory over the next few years.
4) The earnings report’s impact on the entire AI industry chain. Broadcom is a core company in the first layer of infrastructure, but it also connects to second-layer platform companies. If the report is clearly above expectations, it could revive sentiment across:
Nvidia, the chip and semiconductor sector, networking equipment, AI servers, optical communications, and the storage supply chain.
Especially now, when the market is being pressured by rising U.S. Treasury yields. If Broadcom provides very strong AI guidance, then AI fundamentals may regain control of market pricing power.
$AVGO
