AVGO

VGT and VOO pair concentrated tech exposure with broad S&P 500 diversification, capturing AI upside while limiting single-stock earnings risk. VGT's top holdings include Nvidia, Microsoft, Apple, and Broadcom, all of which report earnings in late July, making the fund a direct AI earnings play. VOO's sector mix is 39% tech, 11% financials, and 8% healthcare, which provides a built-in hedge if technology earnings disappoint this season. Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now. Second-quarter earnings season is set to kick off, with investors looking for confirmation that artificial intelligence spending can continue to translate into strong earnings. Rather than trying to predict which individual company will deliver the best results, I'd select two ETFs positioned to benefit from both the AI narrative and broader U.S. economic growth. These two funds are the Vanguard Information Technology ETF (VGT) and the Vanguard S&P 500 ETF (VOO). While individual earnings reports often generate significant volatility, investors do not necessarily need to guess which company will deliver the biggest surprise. Instead, ETFs offer a way to participate in potential upside while reducing company-specific risk. Launched in January 2004, VGT has long served as a way for investors to increase technology exposure in their portfolios. Charging an expense ratio of just 0.09%, the fund spreads its current assets under management of $146.58 billion across 328 holdings, providing a 25.21% year-to-date return. In the current bull market environment, technology remains the main driver of growth, and in my view this momentum will carry into the next earnings season. VGT provides concentrated exposure to many of the top names expected to drive market sentiment. Its largest holdings include Nvidia (NVDA), Microsoft (MSFT), Apple (AAPL), and Broadcom (AVGO), all companies at the center of the AI trade. Top holdings such as Microsoft and Apple are expected to release earnings near the end of the month (July 28th and July 30th, respectively). Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now. With fears surrounding excessive capex, markets will be closely monitoring spending plans, demand for cloud computing, and the effective monetization of AI projects. If...

It has been about a month since the last earnings report for Broadcom Inc. (AVGO). Shares have lost about 14% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Broadcom Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts. Broadcom reported second-quarter fiscal 2026 non-GAAP earnings of $2.44 per share, which beat the Zacks Consensus Estimate by 1.67% and rose 54% year over year. Revenues rose 48% year over year to $22.19 billion and beat the Zacks Consensus Estimate by 0.68%. The quarter benefited from accelerating AI semiconductor revenues, which reached $10.8 billion, up 143% year over year and exceeding the company’s outlook. Semiconductor solutions revenues (68% of net revenues) totaled $15.01 billion, up 79% year over year. Management said the upside was powered by AI semiconductors, with networking representing almost 40% of AI revenues in the quarter. Infrastructure software revenues (32% of net revenues) climbed 9% year over year to $7.18 billion. Management noted that software bookings stayed strong and the company sustained ARR growth of 17% year over year.Profitability remained a standout despite mix headwinds. Non-GAAP gross margin was 77.1%, down 230 basis points year over year as semiconductors became a larger proportion of the mix. Research and development expenses, as a percentage of net revenues, decreased 290 bps year over year to 7.2%. SG&A expenses, as a percentage of net revenues, decreased 130 bps to 2.6%.Adjusted EBITDA rose 52% year over year to $15.24 billion. The adjusted EBITDA margin was 68.7%, up 210 bps year over year. Operating margin rose 52.4% year over year to a record $14.9 billion, reflecting strong operating leverage as non-GAAP operating margin expanded 200 bps year over year to 67.3%. As of May 3, 2026, cash and cash equivalents were $19.63 billion, up from $14.17 billion as of Feb.1, 2026.Total debt (including the current portion of $3.15 billion) was $66.06 billion as of Feb. 1, 2026 compared with $65.14 billion as of Nov. 2, 2025.Broadcom generated $10.49 billion in cash flow from operations in the quarter compared with $8.26 billion in the...

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Broadcom stock is coming off a sharp pullback after a very large 5 year gain, yet the current checks suggest the valuation still leans attractive, with both the Discounted Cash Flow (DCF) intrinsic value estimate and market multiples pointing to the shares pricing in less than the full growth story that many investors are focused on. Broadcom has returned about 7.6x over 5 years, which makes the recent volatility more striking as investors reassess what a reasonable long term price looks like. Expectation for continued AI chip and infrastructure demand can support a rich earnings outlook, while reliance on a concentrated group of hyperscaler customers may keep investors cautious about how durable those cash flows are. On Simply Wall St's broader checks, Broadcom scores highly on valuation, with the company screening as undervalued in 5 of 6 tests, which points to the current price sitting below what those metrics imply is reasonable. The issue now is whether Broadcom's recent share price drop has moved the stock into genuinely undervalued territory or simply back to a fairer level after years of strong gains. Find out why Broadcom's 37.8% return over the last year is lagging behind its peers. The Discounted Cash Flow (DCF) model values Broadcom by projecting future free cash flows and discounting them back to today. Broadcom generated about $32.8b in free cash flow over the latest twelve months in $, and the 2 Stage Free Cash Flow to Equity model assumes those cash flows keep growing rather than shrinking, then fade to a steadier pace. On that basis, the DCF model points to an intrinsic value of about $455 per share, which is roughly 18.8% above the current share price and suggests that, within the framework of this model, Broadcom may screen as undervalued. The recent share price slide after cautious AI guidance helps explain why the market price sits below what these cash flow projections suggest. Overall, the DCF workup indicates Broadcom stock currently appears undervalued relative to the cash flows implied in the model. Our Discounted Cash Flow (DCF) analysis suggests Broadcom is undervalued by 18.8%. Track this in your watchlist or portfolio, or discover 41 more high quality undervalued stocks. Head to the Valuation section of our Com...

(Bloomberg) -- Chip stocks are heading for their best quarter ever, extending an extraordinary start to the year driven by insatiable demand for artificial intelligence equipment. But after recent jitters sent the stocks tumbling, investors are wondering how much further the rally can go. Most Read from Bloomberg Yen Hits Four-Decade Low in Historic Slide That’s Rattled Japan Trump’s U-Turn on Iran Sanctions Would Unravel Decades of Curbs WhatsApp Opens Username Reservations to 3 Billion Users US Stocks Get Tech Boost After AI-Fueled Selloff: Markets Wrap Prabowo Risks Prompt Global Banks to Pull Cash Out of Indonesia “The story of the past six months is the market going all-in on AI infrastructure, but now people are asking if this is sustainable and if we should be worried,” said CJ Muse, senior managing director and technology analyst at Cantor Fitzgerald. The Philadelphia Stock Exchange Semiconductor Index has soared 81% in the second quarter, putting it on track for its best quarter ever with one day to go. The gauge is up 94% in 2026, which if it holds would mark its best year since the dot-com boom in 1999. In contrast, the tech-heavy Nasdaq 100 Index has gained 25% in the second quarter, while the S&P 500 Index has risen 14%. But just as the celebration is getting going, last week’s selloff provides a sobering wakeup call. The semiconductor index plunged 7.9% for its worst weekly decline since April 2025 as Wall Street increasingly questions the durability of the demand for chips. And there was more volatility on Monday, as the gauge swung from being down 3.2% to close up 3.8%. “The biggest concern is about whether hyperscalers will sustain and grow their investments beyond 2026,” said Muse, who doesn’t expect the spending spree to end anytime soon. Turbulence in chip stocks is nothing new, considering the group is highly cyclical with regular booms and busts. This latest run has been powered by AI demand, which remains robust. So far, the biggest spenders — Microsoft Corp., Amazon.com Inc., Alphabet Inc. and Meta Platforms Inc. — are sticking to their aggressive plans. On the flipside, however, hardware makers like Apple Inc. have been forced to raise prices to account for the high cost of memory chips, pressuring their stocks as analysts worry about potentially weakening demand. And OpenAI is reportedly considering delaying its initial public offer...

US equity futures were higher pre-bell Thursday as oil prices fell to their lowest since the start o

Micron trades at 9x forward earnings after 7 straight EPS beats, as Arya argues memory has permanently shifted from cyclical chip to AI essential. NVIDIA trades at 23x and Broadcom at 34x forward earnings, making Micron the cheapest entry point into the same AI secular growth trade. Arya's bull case rests on HBM requiring 3-4x more wafers to produce and 16 multi-year customer agreements with price floors stabilizing the old cycle. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Micron Technology didn't make the cut. Grab the names FREE today. Memory stocks just went from cyclical chip plays to AI-era essentials, and Bank of America's Vivek Arya thinks the market is still pricing them like the old version. Speaking on CNBC the morning after Micron Technology (NASDAQ:MU) reported, BofA's senior semiconductor analyst argued that "what we are witnessing is what I would call a structural rather than a cyclical shift in the memory industry. It is critical to AI. There is no AI without memory." The setup behind that call is the print itself. Micron delivered fiscal Q3 revenue of $41.46 billion, beating consensus by 17.60%, and non-GAAP EPS of $25.11 against a $20.28 estimate, the company's seventh consecutive EPS beat. GAAP gross margin landed at 84.6%, up from 37.7% a year earlier, a transformation more typical of a software company than a DRAM maker. Q4 guidance calls for revenue of $50 billion and non-GAAP EPS of $31, both up sequentially, as detailed in the company's 8-K press release. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Micron Technology didn't make the cut. Grab the names FREE today. Arya's structural case rests on three pillars. First, supply is genuinely hard to add. "You need 3 to 4 times the number of wafers to create the same amount of capacity with high bandwidth memory as you would do with a conventional product. So it's just harder to create." Second, memory is becoming a meaningful slice of hyperscaler budgets. Memory is almost 5 to 40% of cloud capital spending, and customers tolerate the price because the new compute stack pays for it. Third, the agreements. CEO Sanjay Mehrotra disclosed multi-year Strategic Customer Agreements covering 16 customers with price floors, a structural change from the spot-market whiplash that defined prior cycles. Arya pegs the supply...

Despite the stock's significant appreciation, the most compelling upside lies not in near-term earnings but in the long-term visibility the company is building today. After a +53% run over the past year, you might be wondering what could possibly be left in the tank for Broadcom (AVGO). The stock isn't a secret, and the AI story is well known. But the most powerful driver for the next phase of growth extends beyond the strong demand everyone sees today. It lies in how that demand is translating into something exceedingly rare in the chip industry: a multi-year, locked-in view of the future. A Signal Of Insatiable Demand Let’s start with the present, because the numbers are noteworthy. In its most recent quarter, Broadcom’s AI semiconductor revenue hit a record $10.8 billion. That’s impressive on its own. But here’s the figure that changes the game: during that same period, the company took in bookings for AI semiconductors of “over $30 billion.” Think about that. For every dollar of AI chips it shipped, it booked more for the future. This isn't a gentle updraft; it's a clear signal that demand from its core customers is simply outrunning its current ability to supply it, creating a formidable pipeline of future business. How Far Out Can This Trajectory Really Go? This is where the skeptic in you should pipe up. A substantial order book is great, but in the notoriously cyclical semiconductor world, backlogs can vanish. And with so much of this growth tied to just 6 core customers, isn't there a huge concentration risk? It’s a fair question. But management is painting a picture of unusual stability. Just three months ago, the company’s visibility ran into 2027. Today? The CEO states, “Our visibility runs all the way to 2028 right now.” This isn't typical quarterly guidance. It’s a strategic view built on long-term agreements with partners like Google, Meta, and OpenAI who are planning their AI infrastructure years in advance. They need to secure power and data centers, which forces them to lock in their chip orders far earlier than ever before. The $100 Billion AI Target Is Now The Baseline This long-range visibility gives Broadcom the confidence to put a number on the future that redefines the company's scale. Management has reiterated its guidance for AI semiconductor revenue to be “in excess of $100 billion." For context, the company’s total revenue over th...

The S&P 500 and the Nasdaq 100 fell 0.1% and 0.4%, respectively, while the Dow Jones added 0.4%. Alphabet to replace Verizon in the Dow. Micron’s strong Q3 earnings pushed benchmark indices higher in after-hours trading. The S&P 500 and Nasdaq dropped on Wednesday for the third consecutive session amid rising investor concerns about the longevity of the AI boom ahead of Micron earnings due after-hours. The S&P 500 fell 0.1%, the Nasdaq lost 0.4% and the Dow Jones rose 0.4%. The Russell 2000, which tracks stocks with small market capitalizations, added 0.4%. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) lost 0.1% and Invesco QQQ Trust (QQQ) ended Wednesday around 0.4% lower, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) ended 0.4% higher. Meanwhile, the VanEck Semiconductor ETF (SMH) fell 0.5%. However, all three indices and the ETFs tracking them were seen gaining after hours following strong Q3 results from Micron, which alleviated concerns that surging AI demand may have gotten ahead of itself. Retail sentiment on Stocktwits for SPY was ‘bearish,’ while sentiment for QQQ and DIA was ‘bullish,’ with ‘normal’ to ‘high’ message volumes. Micron Technologies (MU) share price soared 11% after-hours on Wednesday after the company broke past Q3 earnings and revenue estimates by a wide margin and furnished a strong outlook for the upcoming quarter amid soaring demand for memory chips amid AI-fueled shortages. “When stocks rise too much and too fast, a pullback almost always ensues,” Rick Gardner at RGA Investments told Bloomberg in an interview. “We would much rather be buying tech stocks on days when they are down, and the pullback can present an opportunity for investors who do not have adequate exposure to this space, which is still fundamentally strong.” The strong results pushed the nearly $500 billion exchange-traded fund tracking the Nasdaq 100 up by 1.5% in after-hours trading, while the Dow and the ETF tracking the index both have consistently gained this week, owing to lower oil prices. Meanwhile, JPMorgan hiked its S&P 500 target for 2026 to 7,800 from 7,200, implying an upside potential of more than 5% from current levels. According to a CNBC report citing a note from the firm, JPMorgan strat...

This article first appeared on GuruFocus. AI and chip shares recovered modestly on Wednesday as investors looked ahead to Micron Technology (MU) after Tuesday's selloff in memory names. Micron was still down about 1%, but it remained one of the stronger performers in the group before its fiscal third-quarter results after the close. The Nasdaq Composite rose about 0.75%, while the S&P 500 gained nearly 0.75%. The Dow climbed almost 0.80%. Western Digital (WDC) fell nearly 3%, while Sandisk (NASDAQ:SNDK) and Seagate Technology (NASDAQ:STX) each lost around 2%, keeping Micron in focus. Warning! GuruFocus has detected 3 Warning Signs with NVDA. Is NVDA fairly valued? Test your thesis with our free DCF calculator. Among other chip names, Nvidia (NASDAQ:NVDA) added about 1% even after Seaport Research kept a Sell rating. Advanced Micro Devices (NASDAQ:AMD) was little changed, while Broadcom (NASDAQ:AVGO) rose about 1% after unveiling a new chip with OpenAI. Intel (INTC) gained about 2%, while Qualcomm (NASDAQ:QCOM) fell about 4% after confirming its $3.9 billion bid for Modular. Micron also drew attention as Corning (GLW) jumped about 9%, Celestica (NYSE:CLS) gained nearly 5%, and Ciena (CIEN) climbed about 3%.

As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the processors and graphics chips industry, including Broadcom (NASDAQ:AVGO) and its peers. The biggest demand drivers for processors (CPUs) and graphics chips at the moment are secular trends related to 5G and Internet of Things, autonomous driving, and high performance computing in the data center space, specifically around AI and machine learning. Like all semiconductor companies, digital chip makers exhibit a degree of cyclicality, driven by supply and demand imbalances and exposure to PC and Smartphone product cycles. The 9 processors and graphics chips stocks we track reported a very strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.9% while next quarter’s revenue guidance was 4.2% above. Luckily, processors and graphics chips stocks have performed well with share prices up 56.9% on average since the latest earnings results. Originally the semiconductor division of Hewlett Packard, Broadcom (NASDAQ:AVGO) is a semiconductor conglomerate spanning wireless communications, networking, and data storage as well as infrastructure software focused on mainframes and cybersecurity. Broadcom reported revenues of $22.19 billion, up 47.9% year on year. This print exceeded analysts’ expectations by 0.6%. Overall, it was a satisfactory quarter for the company with revenue guidance for next quarter beating analysts’ expectations but an increase in its inventory levels. "Broadcom achieved record revenue, operating profit and free cash flow in Q2 driven by accelerating growth in AI semiconductor revenue and strong operating leverage. Q2 semiconductor revenue from AI of $10.8 billion grew 143% year-over-year, above our forecast, driven by increasing demand for custom AI accelerators and AI networking," said Hock Tan, President and CEO of Even though it had a relatively good quarter, the market seems discontent with the results. The stock is down 18.1% since reporting and currently trades at $392.49. Is now the time to buy Broadcom? Access our full analysis of the earnings results here, it’s free. A global leader in its category, Lattice Semiconductor (NASDAQ:LSCC) is a semiconductor designer specializing in customer-programmable chips that enhance CPU performance for intensive tasks such as machine learning. Lattice Semiconductor reported revenues of $170.9 m...

Few artificial intelligence (AI) semiconductor stocks have had a better run than Broadcom (NASDAQ: AVGO) during this current bull market. The stock has posted an average annualized return of 67% over the past three years, which stacks up favorably with Nvidia, Intel, Advanced Micro Devices, and other leading chipmakers. Broadcom stock dropped about 15% in the first quarter due to its high valuation and concerns about margin compression heading into the year. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » But since April, it spiked 55% to reach $481 per share on June 2, leading up to the second-quarter earnings release on June 3. But since then, the stock has plummeted 21% to $380 as of June 23. Shares fell despite a strong earnings report that saw sales surge 48% year over year to a record $22.2 billion. Its AI chip revenue jumped 143% to $10.8 billion, driven by demand for AI accelerators and AI computing. That AI revenue is anticipated to rise 200% in the fiscal third quarter to $16 billion. It raises the question: Why has Broadcom's stock tanked since earnings were released? Often, when there's a sell-off like this for a high-performing company, investors are taking profits after a big run when the valuation has skyrocketed. Broadcom stock had risen 55% in two months leading up to the fiscal second-quarter earnings release, and its price-to-earnings ratio (P/E) had spiked to 81, up from 69 in late January. There were also some concerns that its AI semiconductor revenue projections for the third quarter missed analysts' estimates. The 200% increase to $16 billion was apparently not enough, as analysts had expected $17 billion. In addition, Broadcom guided for slightly lower margins in the third quarter, with the gross margin targeted at 74%, down from 77% in the second quarter, as management said on the second-quarter earnings call. And the quarter's margin was also down year over year. This is mainly due to a changing product mix, as lower-margin but faster-growing AI chips make up a larger portion of overall revenue. So Broadcom is bringing in tons more revenue, but at slightly lower margins, which will eventually find its level. Th...

Fung reports Anthropic engineers ship 8x more code quarterly, with AVGO and NVDA tied to the AI infrastructure enabling that throughput. As code generation costs collapse, verification and observability become the scarce resources, benefiting MSFT and hyperscalers hosting the underlying models. Fung's team has designers and PMs directly committing code, collapsing the traditional boundary between technical and non-technical engineering roles. Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now. A recent appearance by Fiona Fung, who manages the Claude Code and Cowork teams at Anthropic, on Lenny Rachitsky's Podcast offered a window into how one of the world's most prominent AI labs approaches software engineering when its engineers are AI-native. Her headline claim is that today, "Coding is no longer the bottleneck." Fung referenced an internal chart showing Anthropic engineers shipping 8 times as much code per quarter today compared with 2021 through 2025 levels. For two decades, software engineering productivity has been measured in proxies like pull requests, lines shipped, and cycle time. Fung's argument is that the cost of producing code has collapsed inside Anthropic, and the constraints have moved elsewhere. As she put it, "Now it's all about, where has that shift happened? Not only are more people checking in code, but like different disciplines, but also the throughput is so high, how do we think about verification?" When a team can generate a quarter's worth of code in a week, the scarce resource becomes the human and automated judgment needed to confirm the output behaves correctly, secures customer data, and matches intent. Code review, test infrastructure, observability, and post-deployment monitoring become the gating activities rather than raw code development. Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now. Fung described a team composition that would have been unusual even a year ago. "We also have designers, PMs, everybody on the [Claude Code] team checks in code," she said. If accurate as a description of practice, it implies that the traditional career ladder, where coding is a gated specialist activity, is being rewritten inside AI-native firms. Product managers prototype features. Designers ship UI changes direc...