Broadcom results blew up—are the AI money people starting to toss it around again? Brothers, watch this signal
Last night Broadcom released its earnings report, and the numbers were seriously wild: revenue was $29.59 billion, up 86% year over year. Adjusted earnings per share were $3.32, and both beat expectations. The most explosive part was AI semiconductor revenue at $16.7 billion, jumping 221%, with its share rising to 56%.
But after the bell, the stock first dropped by 6 points—why? Because the next-quarter guidance is $34.8 billion, slightly below Wall Street’s expectations by a tiny margin—just a few hundred million dollars—and the market immediately flipped. This script is exactly like the one for Marvell: you score 99, but the market thinks you scored 100, so you get beaten up.
After the earnings call started, though, the stock pulled back up again in the after-hours trading. CEO Hock Tan (Cheng Fuyang) dropped a “satellite”: this year’s AI revenue guidance was raised from $56 billion to $58 billion; next year it will directly hit $115 billion; and the year after that, $230 billion. Put simply: tripled-to-quadrupled in three years, with an annualized growth rate of 100%. The market heard it and—believed it again.
How to trade? Right now, Broadcom is basically the sentiment barometer for the AI sector. Last night the tape was actually very clear: after Broadcom’s call turned green, the options skew in the whole semiconductor space rose noticeably—call options started getting lively again, and capital was front-running next week’s AI move $AVGO $KORU $SOXL
Last night Broadcom released its earnings report, and the numbers were seriously wild: revenue was $29.59 billion, up 86% year over year. Adjusted earnings per share were $3.32, and both beat expectations. The most explosive part was AI semiconductor revenue at $16.7 billion, jumping 221%, with its share rising to 56%.
But after the bell, the stock first dropped by 6 points—why? Because the next-quarter guidance is $34.8 billion, slightly below Wall Street’s expectations by a tiny margin—just a few hundred million dollars—and the market immediately flipped. This script is exactly like the one for Marvell: you score 99, but the market thinks you scored 100, so you get beaten up.
After the earnings call started, though, the stock pulled back up again in the after-hours trading. CEO Hock Tan (Cheng Fuyang) dropped a “satellite”: this year’s AI revenue guidance was raised from $56 billion to $58 billion; next year it will directly hit $115 billion; and the year after that, $230 billion. Put simply: tripled-to-quadrupled in three years, with an annualized growth rate of 100%. The market heard it and—believed it again.
How to trade? Right now, Broadcom is basically the sentiment barometer for the AI sector. Last night the tape was actually very clear: after Broadcom’s call turned green, the options skew in the whole semiconductor space rose noticeably—call options started getting lively again, and capital was front-running next week’s AI move $AVGO $KORU $SOXL
