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Broadcom AVGO reported third-quarter fiscal 2026 non-GAAP earnings of $3.32 per share, up 96.4% year over year and 3.11% above the Zacks Consensus Estimate. Revenues surged 85.5% year over year to $29.59 billion and beat the consensus mark by 0.41%. Strong custom AI accelerator and networking demand drove the quarterly results. AI semiconductor revenues jumped 221% year over year to $16.7 billion. Broadcom Inc. price-consensus-eps-surprise-chart | Broadcom Inc. Quote AI semiconductor revenues represented 56% of total revenues. XPU shipments increased more than 3.5 times year over year and accounted for 73% of AI revenues, while AI networking revenues rose more than 2.5 times.Broadcom shipped Ironwood TPU v7 in high volume to Anthropic and Google, began production shipments of Google’s next-generation TPU v8i and shipped OpenAI’s first-generation Jalapeno custom accelerator. AVGO expects Meta’s MTIA accelerator to enter production shipments in the fourth quarter.Semiconductor Solutions revenues surged 127% year over year to a record $20.84 billion and represented 70% of total revenues. Non-AI semiconductor revenues were $4.2 billion, up 5% year over year and flat sequentially.The segment's operating margin rose 440 basis points (bps) year over year to 61% as revenue growth outpaced operating expense growth. Broadcom continues to invest in research and development while expanding capacity for substrates and optical components to support semiconductor demand. Infrastructure Software revenues increased 29% year over year to $8.75 billion and contributed 30% of total revenues. Annualized recurring revenue (ARR) grew 15% year over year.Software operating margin expanded 650 bps year over year to roughly 84%. Broadcom also introduced VMware Private AI Cloud, aimed at letting enterprises run AI alongside existing applications while maintaining security, compliance and control over data. Non-GAAP gross margin was $22.19 billion, translating to a 75% gross margin. The margin declined 210 bps sequentially as AI semiconductor revenues became a larger part of the sales mix.Non-GAAP operating expenses were $2.1 billion compared with $2.04 billion a year earlier. Non-GAAP operating income increased 92% year over year to $20.1 billion, while the operating margin reached 67.9%, reflecting operating leverage from the sharp revenue increase. The company ended the quarter with $24 billion in cash and cash equivalents.Broadcom generated $14.20 billion in cash from operations and spent $532 million on capital expenditures. Free cash flow reached a record $13.67 billion, equal to 46% of revenues.AVGO paid $3.1 billion in dividends and reduced long-term debt by $5.6 billion during the quarter. The board also approved a quarterly dividend of 65 cents per share. For the fourth quarter of fiscal 2026, Broadcom expects revenues of approximately $34.8 billion, representing 93% year-over-year growth. Semiconductor revenues are projected at about $26.1 billion, including $21.7 billion of AI semiconductor revenues, up 236%.Infrastructure Software revenues are expected at roughly $8.7 billion. Broadcom forecasts a non-GAAP operating margin of about 66% and a gross margin of approximately 73% as the mix shifts further toward XPUs with higher memory content. Broadcom now expects fiscal 2026 AI semiconductor revenues of $58 billion, up 186% year over year and above its prior $56 billion outlook. The company has secured supply to support approximately $115 billion of AI semiconductor revenues in fiscal 2027.AVGO also sees fiscal 2028 AI semiconductor revenues reaching $230 billion. The company said demand exceeds its fiscal 2027 outlook, while deployment timing depends on factors including data-center readiness, leading-edge silicon, substrates and memory supply. Broadcom carries a Zacks Rank #3 (Hold) at present.Some better-ranked stocks in the broader Zacks Computer and Technology sector are Silicon Motion Technology SIMO, Sandisk SNDK and Teradyne TER. Each of the three stocks sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Long-term earnings growth rates for Silicon Motion Technology, Sandisk and Teradyne are pegged at 53.59%, 48.16% and 54.38%, respectively. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Broadcom Inc. (AVGO) : Free Stock Analysis Report Sandisk Corporation (SNDK) : Free Stock Analysis Report Teradyne, Inc. (TER) : Free Stock Analysis Report Silicon Motion Technology Corporation (SIMO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Broadcom Inc.? Here are five stocks we like better. Record results were driven by AI demand: Third-quarter revenue surged 86% year over year to $29.6 billion, while free cash flow reached a record $13.7 billion. AI semiconductor revenue rose 221% to $16.7 billion and represented 56% of total revenue. Broadcom projects accelerating AI growth: The company forecasts fourth-quarter AI semiconductor revenue of $21.7 billion and expects fiscal 2026 AI revenue of $58 billion, with long-term outlooks of approximately $115 billion in fiscal 2027 and $230 billion in fiscal 2028. Customer demand remains strong, but deployment faces constraints: Broadcom cited commitments from Google, Anthropic, OpenAI and Meta, while warning that data-center readiness, power, land, advanced wafers, substrates and high-bandwidth memory could limit the pace of deployments. Broadcom’s Earnings Test Comes With a Higher Bar After NVIDIA’s Blowout Broadcom (NASDAQ:AVGO) reported record third-quarter fiscal 2026 revenue, operating income and free cash flow, driven by sharply higher demand for artificial intelligence semiconductors and custom AI accelerators. Revenue rose 86% year over year to $29.6 billion, while operating income increased 92% to a record $20.1 billion. Non-GAAP diluted earnings per share grew 96% from a year earlier to $3.32. The company generated record free cash flow of $13.7 billion, equal to 46% of revenue. → AST SpaceMobile Is Down 54%—Can FCC Progress and BlueBirds Reverse the Slide? 3 AI Infrastructure Stocks to Watch Beyond NVIDIA “We delivered an exceptional quarter with revenue, operating income and free cash flow all exceeding prior records,” President and CEO Hock Tan said. He said AI semiconductor revenue grew 221% year over year and 54% sequentially to $16.7 billion during the quarter. Broadcom’s Semiconductor Solutions segment produced record revenue of $20.8 billion, up 127% year over year and accounting for 70% of consolidated revenue. AI semiconductor revenue represented 56% of total company revenue, compared with 49% in the preceding quarter. → Palo Alto’s Rally Has One Big Problem Ahead of Earnings MarketBeat Week in Review – 08/24 - 08/28 Tan said the company’s XPU shipments rose more than 3.5 times from a year earlier and represented 73% of AI revenue in the third quarter. AI networking revenue increased more than 2.5 times year over year. During the quarter, Broadcom delivered high-volume shipments of Ironwood TPU v7 to Anthropic and Google, while beginning production shipments of Google’s next-generation TPU v8i. It also shipped Jalapeño, OpenAI’s first-generation custom accelerator. Tan said Broadcom expects production shipments of Meta’s custom MTIA accelerator in the fourth quarter. → Securing AI: 5 Most-Upgraded Stocks From the Q2 Reporting Season Tan said the company believes custom accelerators can offer superior performance, cost and power characteristics for customers’ specific large-language-model workloads. He also described Jalapeño as outperforming Grace Blackwell GPUs for certain inference workloads, citing OpenAI’s announcement, and said it was comparable to Vera Rubin GPUs in running OpenAI workloads. For the fourth quarter, Broadcom forecast consolidated revenue of approximately $34.8 billion, up 93% year over year. It expects semiconductor revenue of about $26.1 billion, including $21.7 billion in AI semiconductor revenue, which would represent growth of more than 236% from the prior-year period. Infrastructure software revenue is expected to be approximately $8.7 billion in the fourth quarter, up 25% year over year. Broadcom expects consolidated operating margin of about 66%. Fiscal third-quarter AI semiconductor revenue: $16.7 billion Fiscal fourth-quarter AI semiconductor revenue forecast: $21.7 billion Fiscal 2026 AI revenue forecast: $58 billion, up 186% year over year Fiscal 2027 AI revenue outlook: approximately $115 billion Fiscal 2028 AI revenue outlook: approximately $230 billion Tan said the company has secured supply to support its fiscal 2027 AI revenue outlook and has line of sight to supply needed for its fiscal 2028 target. He said demand exceeds the company’s current 2027 outlook, but Broadcom is accounting for the pace at which chips can be deployed at customer data centers. “This is real demand,” Tan said, pointing to customer data-center readiness as well as the availability of leading-edge wafers, substrates and high-bandwidth memory. Broadcom said it expects Google to purchase multi-tens of billions of dollars of TPUs annually over the next several years under a long-term agreement for future TPUs and AI networking. Tan said Anthropic is expected to deploy an additional 5 gigawatts of TPU v8i in 2027 and an incremental 10 gigawatts in 2028. OpenAI is expected to deploy 1.3 gigawatts of Jalapeño in 2027, with Broadcom having line of sight to more than 5 gigawatts of Jalapeño and successor products in 2028. Broadcom also highlighted its AI networking portfolio, including its Tomahawk Ethernet switches, PCI Express switching products and optical interconnect components. Charlie Kawwas, president of the Semiconductor Solutions Group, said Tomahawk 6 has been deployed across nearly all AI hyperscalers working with Broadcom on XPUs, as well as at customers not using Broadcom accelerators. Kawwas said Tomahawk Ultra, designed to support scale-up networking with low-latency Ethernet, began deployment during the current quarter and is expected to see further use in fiscal 2027. He said Broadcom is seeing the technology used in both XPU and some GPU clusters. Management identified land, power and data-center shell availability as important factors in determining the timing of customer deployments. Tan also cited leading-edge silicon, substrates, high-bandwidth memory and system memory as potential supply-chain constraints. Broadcom plans to begin using its Singapore fabrication facility for substrates in fiscal 2027. Kawwas said the company is also more than tripling year-over-year capacity at its indium phosphide factories for EML, CW laser and VCSEL products, with manufacturing operations in the U.S. and Singapore. Infrastructure software revenue increased 29% year over year to $8.8 billion, while annual recurring revenue grew 15%. The segment’s operating margin was approximately 84%, up 650 basis points from a year earlier. Tan said Broadcom introduced VMware Private AI Cloud, which is intended to provide enterprises with a platform to build and operate AI alongside existing applications while protecting data and supporting security and compliance requirements. He said VMware Cloud Foundation is also helping customers move workloads from public clouds to private clouds. Chief Financial Officer Amie Thuener said consolidated gross margin was 75% in the third quarter, down 210 basis points sequentially because AI semiconductors made up a larger share of sales. The company expects fourth-quarter gross margin of roughly 73%, reflecting the increasing mix of XPUs and their greater memory content. Thuener said management remains focused on operating margin rather than gross margin alone, given the company’s operating leverage. Broadcom ended the quarter with $24 billion in cash and $4.5 billion in inventory. It paid $3.1 billion in dividends and repaid $5.6 billion of long-term debt during the quarter, followed by another $1.5 billion of senior notes after quarter-end. The company expects fourth-quarter capital expenditures of $1.4 billion as it invests in semiconductor capacity. Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company's semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia. On the semiconductor side, Broadcom's portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Broadcom Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

Interested in Rezolve AI PLC? Here are five stocks we like better. Revenue surged to $130.8 million in the first half of 2026 from $6.3 million a year earlier, with the customer base expanding to more than 1,640 accounts. Rezolve reaffirmed its approximately $360 million full-year revenue target and aims to exit 2026 with at least $500 million in ARR. Despite strong growth, Rezolve reported a $139.5 million net loss, a $32.6 million adjusted EBITDA loss and $96.1 million in operating cash use. The company held approximately $100.5 million in total cash, including restricted funds, as of June 30. Partnerships and infrastructure expansion remain central to the strategy, with Microsoft, Google, Tata Consultancy Services and Tech Mahindra supporting distribution and deployments. Google selected Rezolve’s database technology for a Google Cloud Web3 infrastructure deployment, though financial terms were not disclosed. Google Cloud Just Gave Rezolve AI a Major Vote of Confidence Rezolve AI (NASDAQ:RZLV) reported first-half 2026 revenue of $130.8 million, up from $6.3 million in the prior-year period, as the company expanded its enterprise customer base and continued to build distribution partnerships with major technology and services providers. Founder, Chairman and CEO Dan Wagner said first-half revenue was nearly three times the company’s revenue for all of 2025. Rezolve’s customer base exceeded 1,640 at the end of the period, compared with more than 950 at year-end 2025. The company cited publicly disclosed relationships with retailers, consumer brands and other enterprises including H&M, ASOS, Ferrero, Myntra, Rakuten Group, Omaha Steaks, Cineplex, Target and Qatar Airways. → OneMain’s Yield Comes With a Catch Rezolve AI Stock Has a Short-Squeeze Setup, But Execution Comes First Rezolve reaffirmed its expectation for approximately $360 million in fiscal 2026 revenue and said it continues to target at least $500 million in annual recurring revenue, or ARR, exiting the year. The company said its revenue profile is weighted toward the second half, reflecting holiday retail activity, customer campaigns, enterprise deployment schedules and partner-led distribution. Based on the company’s full-year guidance, second-half revenue would be approximately $229 million, or about 75% above first-half revenue. CFO and COO Arthur Yao said the outlook does not include anticipated acquisitions and is “purely organic” based on the company’s expectations. → Apple’s Foldable iPhone Could Be a Catalyst, But Not a Cure-All 3 High-Risk, High-Reward Stocks With Explosive Upside Wagner said growth is expected to come from both expansion within existing accounts and new enterprise wins. Existing customers that began with smaller engagements are increasing their commitments, he said, while the company is also being introduced to larger accounts through partners. First-half gross profit rose to $63.9 million from $6 million a year earlier, while gross margin was 48.9%. Yao said the margin reflected the company’s mix of software, professional services, loyalty and platform activities, as well as costs associated with implementing enterprise deployments. → Strike a Balance Between Growth and Stability With These 3 Names Ready to Rally He said loyalty and professional services generally carry lower margins than recurring software, platform revenue and infrastructure licensing. Rezolve expects gross margin to improve as higher-margin agentic commerce platform revenue becomes a larger part of the business mix. Yao said the company’s core-margin business exceeds 90%, though he did not provide a consolidated margin target. Rezolve reported an operating loss of $128.1 million for the first half, compared with an operating loss of $32.4 million in the prior-year period. The operating loss included $41.5 million of share-based compensation and $20.4 million of depreciation and amortization, according to Yao. Net loss was $139.5 million, compared with $57.9 million a year earlier, after a $4.5 million income tax benefit. On an adjusted EBITDA basis, Rezolve reported a loss of $32.6 million, which Yao said excludes primarily non-cash expenses and one-time acquisition and restructuring costs. Operating cash use was $96.1 million, while investing cash use totaled $148.3 million, largely related to business combinations, platform development and other investments. Financing activities provided $232.5 million, including about $250 million of gross equity capital raised during the first half. As of June 30, the company had $33.2 million in cash and cash equivalents and $67.4 million in restricted cash, for total cash of approximately $100.5 million. Yao said restricted cash is not immediately available for general corporate purposes. He said the company did not need additional capital for day-to-day operations, though it may consider debt or other financing structures for strategic opportunities and potential acquisitions. Management highlighted relationships with Microsoft, Google, Tata Consultancy Services and Tech Mahindra as routes to enterprise customers, implementation capacity and cloud infrastructure. Wagner said the company’s agentic commerce technology is available through Microsoft Foundry and can be deployed on Microsoft Azure, with integrations across Microsoft Dynamics 365 and Microsoft 365 Copilot. Wagner said Tata Consultancy Services and Tech Mahindra can provide professional services and deployment support for customers, allowing Rezolve to focus on supplying technology. He said selling through these partners can improve Rezolve’s gross-margin profile because the partners handle much of the implementation work. Rezolve has about 700 employees in its professional services group, mainly based in India, he added. Following the end of the first half, Google selected Rezolve’s proprietary distributed database technology for an infrastructure-level deployment within Google Cloud, according to management. The initial deployment covers approximately 100 terabytes of data across 10 blockchain networks and supports indexing and data pipelines for Google Cloud Web3 datasets. Wagner described the deployment as external validation of Rezolve’s underlying data infrastructure, which the company has historically used to support its own agentic commerce products. Management did not disclose pricing, contract terms or expected revenue from the Google relationship. Wagner said additional information could become available in coming weeks and that the company is pursuing other infrastructure licensing opportunities. Rezolve also said its Reward acquisition expanded its loyalty capabilities into more than 15 markets. Management said Reward has relationships with Barclays, Visa, Mastercard, NatWest and Mashreq, and has returned more than $2 billion in cashback to consumers. Following the period end, the company partnered with Zilch, a payments platform serving nearly 6 million customers and driving more than $3.3 billion annually to partner merchants. Wagner said Rezolve plans to demonstrate its technology stack and commercialization plans at its Nasdaq Investor Day on Oct. 6. Rezolve AI, Inc operates a cloud-based engagement platform that connects physical world touchpoints to digital experiences. Through its proprietary Rezolve platform, the company enables brands and marketers to deploy interactive mobile campaigns triggered by NFC-enabled tags, QR codes, short URLs and other proximity-based technologies. These campaigns facilitate in-the-moment product demonstrations, digital promotions and seamless e-commerce transactions without the need to download a dedicated app. The company’s platform includes a no-code campaign management portal, real-time analytics dashboard and integration tools for customer relationship management, payment processing and third-party marketing systems. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Rezolve AI H1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue growth of approximately 1,970% in H1 2026 was driven by the rapid expansion of the customer base to over 1,640 enterprise clients. The company is pivoting from a conventional direct sales model to a partner-led distribution strategy leveraging Microsoft, Google, TCS, and Tech Mahindra to access global enterprise markets. Management attributes the successful scaling to their 'Agentic' commerce suite, which provides the data, intelligence, and payment rails required for AI agents to execute transactions. The selection of Rezolve's distributed database technology by Google Cloud validates the company's strategy to license its underlying infrastructure independently of its commerce applications. Operational focus has shifted toward utilizing global system integrators for implementation, which improves gross margins by offloading lower-margin professional services to partners. Production-scale validation was achieved during the FIFA 2026 World Cup period, processing over 103 million app opens and demonstrating the platform's reliability in high-volume environments. Reaffirmed full-year 2026 revenue guidance of approximately $360 million, implying H2 revenue will be around 75% greater than H1 due to seasonal retail peaks. Targeting an ARR exit rate of at least $500 million by the end of 2026, supported by a significantly larger customer operating base and maturing partner channels. Management expects to announce further infrastructure licensing agreements in the near term, following the initial Google Cloud deployment. Gross margins are expected to improve as the revenue mix shifts toward higher-margin software recurring platform revenue and infrastructure licensing. The company anticipates that the 'Agentic' economy will drive a massive increase in transaction volumes, positioning their proprietary blockchain-based payment rails for future licensing. Reported GAAP operating loss of $128.1 million includes $41.5 million in non-cash share-based compensation and $20.4 million in depreciation and amortization. The acquisition of Rewards Network expanded capabilities across 15 markets and established relationships with major financial institutions like Barclays and Visa. A partnership with Zilch extended the platform's reach to 6 million customers, driving over $3.3 billion in annual merchant volume. The company maintains a liquidity position of approximately $100.5 million in total cash, including $67.4 million in restricted cash, to fund ongoing growth initiatives. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Partners like TCS and Tech Mahindra provide immediate credibility and access to blue-chip accounts, accelerating deployment discussions. The direct sales force is currently fully consumed by managing the high volume of deals originating through these partner channels. H1 gross margin of 48.9% was impacted by lower-margin loyalty and professional services used as customer onboarding enablers. Core agentic commerce platform margins exceed 90%, and management expects overall margins to trend upward as software revenue scales. Current cash reserves are sufficient for day-to-day operations; future capital needs would likely be tied to strategic M&A opportunities. Management believes the long-term revenue potential from the Google relationship alone could reach billions of dollars. The technology was selected from a field of 24 competitors, serving as a major external validation of Rezolve's proprietary database architecture. Management claims a first-mover advantage, stating that while competitors engage in 'hand waving,' Rezolve has actual infrastructure and products in live deployment. The company's infrastructure was specifically built to handle the 100x volume increases expected when AI agents interrogate hundreds of sites simultaneously.

Anytime a stock jumps 20% in a single session after earnings, Wall Street analysts have a choice to either chase the move or hold their ground. Morgan Stanley chose the latter. Elastic (ESTC) closed the week ended Aug. 28 at $99.91, up 19.31% following its Aug. 27 first-quarter fiscal 2027 earnings release, according to Yahoo Finance. The jump isn’t just about one strong quarter. Elastic is riding two trends that are becoming hard for businesses to ignore: the rapid rise of artificial intelligence (AI) and the growing need to make sense of all the data companies collect. That’s where Elastic comes in. Its platform helps companies search, analyze, and visualize data across cloud, private, and hybrid environments, increasingly giving businesses the tools to put AI to work. Many refer to it as the Google of corporate search. The 14-year-old Elastic beat guidance across every key metric, raised its full-year outlook, and delivered record customer additions in its highest-value cohort. Morgan Stanley reviewed the results in a note shared with me at TheStreet. The note’s headline, “Now That’s More Like It,” was unusually candid for a firm maintaining a neutral stance. Morgan Stanley raised its price target to $75 from $66 while keeping its Equal-weight rating. With the stock already trading at $99, Morgan Stanley is essentially saying that, although it’s a great quarter, they are not chasing it here. Also Read: Elastic N.V. Latest News and Stories As mentioned, the Q1 fiscal 2027 results, reported Aug. 27, were strong across every metric that matters for an enterprise software company. Total revenue of $478 million grew 15% year over year. (YoY) Cloud revenue of $235.2 million grew 20% on a constant-currency basis, accelerating from 19% in Q4. Sales-led subscription revenue of $398.5 million grew 17% on a Constant-currency basis, accelerating from 16% in Q4. Current remaining performance obligations grew 21% year over year to $1.153 billion. Total RPO grew 27% YoY to $1.854 billion. Adjusted free cash flow was $143 million. One customer metric stands out. Elastic added 80 customers with more than $100,000 in annual contract value sequentially, the highest net addition quarter on record. The cohort now totals more than 1,800 customers, up 16% year over year. “AI is reshaping the enterprise technology stack,” said CEO Ash Kulkarni in the earnings statement. “Our record quarter-over-quarter net customer additions reflect the durability of that demand.” Full-year fiscal 2027 revenue guidance was raised by approximately $12 million, between $1.998 and $2.010 billion, exceeding the $9 million first-quarter beat. Management said they expect acceleration in the second half, with Q4 carrying the highest year-over-year growth rate. Morgan Stanley’s note was quite specific about both the positives and its remaining hesitation. On the positive side, Morgan Stanley likes cloud acceleration to 20% constant currency despite a tough year-over-year comparison, sales-led subscription growth accelerating for the second consecutive quarter, a strong pipeline from recent go-to-market investments, and a fiscal 2027 guidance raise that exceeded the Q1 beat. More AI: Nvidia just made a move Wall Street wasn’t ready for Microsoft just took sides in AI policy fight OpenAI just disclosed something genuinely alarming The specific callout on Elastic’s business mix is this. Management cited Search and Security as growing above the overall company growth rate, while Observability is growing more slowly. Morgan Stanley flagged that it wants to see more traction in Observability specifically before gaining confidence in a multi-year acceleration. That is the one missing piece preventing the firm from upgrading. The key concern is familiar in enterprise software: Consumption-based cloud revenue is notoriously difficult to extrapolate. Bears point to Elastic’s history of one-off acceleration quarters that failed to sustain. Bulls point to the contracted backlog already sitting in the cRPO balance that provides revenue visibility for the sales-led subscription segment. “A cc accel across rev, cloud and sales-led subscription plus a raise to the FY27 rev outlook that was initially deemed aggressive should get rewarded,” Morgan Stanley wrote. “The debate ahead is whether the cloud accel is fundamentally durable and we are not yet convinced on that front.” Let’s step out of financials for a minute. Elastic’s product announcements during Q1 show that it has found its footing in the AI infrastructure stack. The company delivered general availability of native Prometheus and PromQL support, introduced Columnar Mode for analytics workloads, launched VectorDB index mode for instant vector search, and introduced an agentic Kubernetes investigation workflow. In security, Attack Discovery and Alert Zero both advanced, targeting the AI-powered security operations center. Elastic also unveiled its collaboration with OpenAI to bring advanced reasoning models with governed enterprise context into Elasticsearch. Related: Morgan Stanley sees big change coming for Alphabet stock The Gartner recognition validates the progress. Elastic became a leader in the Observability Platforms Magic Quadrant for the third consecutive year, and in the IDC MarketScape for SIEM 2026, according to Elastic’s Q1F27 results. The Deductive AI acquisition, which brings AI-powered production issue investigation to Elastic Observability, addresses the one segment Morgan Stanley is still watching. ESTC is up 32.44% year to date and 13.81% over the past year, according to Yahoo Finance. Morgan Stanley’s $75 price target implies the stock has run meaningfully ahead of where the firm is comfortable endorsing it at this stage of the acceleration debate. My read of that stance is that the quarter was genuinely impressive and that the setup for 2H is credible. Yet a 19% single-day move takes the stock well above the valuation that Morgan Stanley is willing to support with an Overweight. For investors willing to bet that the cloud acceleration is durable rather than a one-off, Elastic’s Q1 gave the bull case its strongest evidence. Morgan Stanley is encouraged by the strong start to FY27, but is asking for one more quarter of proof before it agrees. Related: Morgan Stanley sends a blunt Tesla message to investors This story was originally published by TheStreet on Aug 29, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.

MRVL dropped 8% despite beating estimates and raising its FY2028 revenue target to $18 billion after management pushed the Google AI payoff to fiscal 2029. NVDA barely moved and INTC slipped 2%, confirming the market treats the selloff as a Marvell-specific timing reset rather than a broad AI infrastructure de-rating. GOOGL holds a warrant for up to 7% of MRVL shares tied to revenue milestones, with Investor Day on October 6 the next catalyst to quantify the upside. Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now. A beat-and-raise report from Marvell hit the wires after Thursday's close, yet Friday's early trading told a very different story. Marvell Technology (NASDAQ:MRVL) stock is down 7% to $225 in early Friday trading, giving back a chunk of a huge recent run despite a record Data Center quarter and a bigger long-term revenue outlook. The catalyst comes down to timing. Marvell disclosed an expanded custom silicon agreement with Alphabet's (NASDAQ:GOOGL) Google that could scale into a franchise-defining opportunity. Management pushed the big financial impact out to fiscal 2029, later than the market was positioned for. The iShares Semiconductor ETF (NASDAQ:SOXX) is down 1% to $520.70 in early trading. The broader tech tape is down 0.1% to $720.42, essentially unmoved by comparison. That gap suggests the selloff is a Marvell-specific reset rather than a broad semiconductor unwind. Marvell reported fiscal second quarter 2027 revenue of $2.739 billion, up 37% year over year, with non-GAAP earnings of $0.94 per share. Both figures topped Wall Street expectations, positioning the release as one of the cleaner AI infrastructure reports of the season. Marvell's Data Center revenue reached a record $2.17 billion, up 46% year over year, and represented 79% of total revenue. Q3 FY2027 Data Center growth is guided at 75% year over year, reinforcing the mix shift toward AI infrastructure customers. Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now. Marvell raised its fiscal 2027 revenue outlook to about $12 billion from a previous $11.5 billion, and its fiscal 2028 target to about $18 billion from $16.5 billion. CEO Matt Murphy stated that "AI-related bookings remain exceptionally robust, and we expect our revenue growth to accelerate further through the remainder of fiscal 2027." The expanded Google agreement covers custom AI inference accelerators, storage controllers, network interface controllers, memory interface controllers, and near-memory compute, all attached to the TPU ecosystem. A warrant allows Google to acquire up to 7% of Marvell's shares, tied to revenue milestones. An analyst on the call framed the program as roughly $120 billion in cumulative revenue over six years, and management called the assessment directionally valid. The issue for Marvell shares is that management said the big impact would arrive "in 29 and beyond," with most of the near-term contribution already reflected in existing guidance. Marvell also guided Q3 non-GAAP gross margin to 57.5% to 58.5%, a sequential decline of about 90 basis points at the midpoint, attributed to a growing contribution from custom AI silicon that carries lower margins than the company's standard products. That combination, back-loaded revenue paired with front-loaded margin compression, is exactly the mix that trims a stretched multiple. For Marvell stock trading at a rich forward valuation, pushing the payoff two fiscal years out gives active managers a reason to trim into strength and revisit closer to the Investor Day setup. Meanwhile, NVIDIA (NASDAQ:NVDA) stock is down 0.2% to $227.63, barely budging after its own AI results already set the tone earlier in the week. Intel (NASDAQ:INTC) stock is down 2% to $90.34, slipping in sympathy without a fresh company catalyst of its own. The narrow spread across peers confirms the market is treating Marvell's move as an idiosyncratic reset around timing and mix rather than a broader AI infrastructure de-rating. Google's role as counterparty introduces a potential dilution mechanic for Marvell if milestones are hit, though the exposure is a long-tailed structural feature rather than an immediate overhang. Google's own AI infrastructure buildout is the underlying demand engine that made the agreement valuable in the first place, which is why the strategic read is more constructive than the tape suggests. The next scheduled catalyst is Marvell's Investor Day on October 6, 2026 in New York City, where management plans to detail the fiscal 2029 custom-revenue trajectory, ranges for the Google-related agreement, and a refreshed long-term operating model. A quantified upside case for the warrant could reframe the story as a near-term revenue accelerator, and the absence of one could deepen the reset. Traders can watch for whether MRVL stock holds key support after Thursday's close. Marvell shares were up 185% year to date through the prior session, so today's giveback still leaves a stretched setup heading into October. Investors considering the name should size their positions cautiously into Investor Day and treat any Q3 execution slippage as a signal to trim exposure rather than add. Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now. Contact [email protected] for any questions or corrections.

Marvell Technology (NASDAQ:MRVL), a data-center networking and custom AI semiconductor solutions provider, closed at $216.62, down 10.28%. The stock fell after the fiscal second-quarter results beat estimates, as investors focused on softer fiscal 2028 guidance and a lack of details on the Google deal. Trading volume reached 47.7M shares, coming in nearly 18% above its three-month average of 40.3M shares. Marvell Technology IPO'd in 2000 and has grown 1,430% since going public. S&P 500 (SNPINDEX:^GSPC) closed at 7,710, down 0.27%, while the Nasdaq Composite (NASDAQINDEX:^IXIC) finished at 26,402, down 0.52%. Among semiconductor design for data infrastructure, networking, and custom AI chips peers, Broadcom (NASDAQ:AVGO) closed at $368.79, down 0.74%, and NXP Semiconductors (NASDAQ:NXPI) closed at $223.58, down 1.01%. Marvell delivered earnings that beat Wall Street's expectations, with sales and EPS rising 37% and 50%, respectively. However, analysts wanted more from the company's 2028 guidance, despite management raising 2027 revenue guidance to $12 billion and 2028 to $18 billion, compared to $9.5 billion over the last 12 months. After announcing a new deal with Alphabet's (NASDAQ:GOOG) (NASDAQ:GOOGL) Google business, many analysts were hoping for more potential upside in management's outlook for 2027 and 2028, which may have prompted today's decline. That said, Marvell is holding an Investor Day in October, where it may discuss in more detail how this Google deal will affect earnings and guidance. Ultimately, Marvell is priced for perfection at 53 times forward earnings -- even after today's decline -- and its earnings report was solid but not "perfect" enough to support its lofty valuation. Before you buy stock in Marvell Technology, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Marvell Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $430,571!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,399,268!* Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 28, 2026. Josh Kohn-Lindquist has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Broadcom, Marvell Technology, and NXP Semiconductors. The Motley Fool has a disclosure policy. Stock Market Today, Aug. 28: Marvell Slides 10% on Softer Fiscal 2028 Guidance and Google Deal Timing was originally published by The Motley Fool