Broadcom's AI business is experiencing significant growth, driving strong financial results and positive forecasts. The company's second-quarter earnings exceeded expectations, with revenue increasing by 20% to $15 billion and adjusted earnings per share rising by 44% to $1.58. CEO Hock Tan anticipates continued AI revenue growth through fiscal year 2026, supported by major customers like Alphabet, Meta, and ByteDance. Broadcom is shipping its new Tomahawk 6 networking chip to enhance AI workloads, with AI revenue expected to reach $5.1 billion in the next quarter. While Broadcom's AI chip business is thriving, its non-AI chip business is growing at a slower pace. Broadcom is considered a safer AI stock due to its diverse business segments, including mainframe and VMware, which provide stability alongside its AI chip investments. Other companies in the AI space are also seeing significant activity. Altimeter Capital has reduced its Nvidia stake in favor of CoreWeave, an AI IPO stock providing cloud computing infrastructure with Nvidia GPUs. Investors are increasingly allocating funds to robotics, automation, and AI companies, with 95% of professional investors expecting increased allocations to robotics and physical AI over the next three years. AI hyperscalers Nebius Group and CoreWeave have shown diverging stock movements, while Google's AI Mode in Labs now offers interactive charts for finance queries. Kargo has secured $18.4 million to develop AI-powered products for supply chains, using AI cameras to gather freight data and improve inventory management.
Key Takeaways
- Broadcom's AI business is driving significant revenue growth, with expectations of continued expansion through fiscal year 2026.
- Broadcom's Q2 earnings beat expectations, with a 20% revenue increase to $15 billion.
- CEO Hock Tan forecasts AI semiconductor revenue to reach $5.1 billion in the next quarter.
- Altimeter Capital reduced its Nvidia stake and invested significantly in CoreWeave, an AI cloud infrastructure provider.
- Investors are increasing allocations to robotics, automation, and AI companies.
- Google's AI Mode in Labs now provides interactive charts for finance queries.
- Kargo secured $18.4 million to develop AI-powered supply chain products.
- Broadcom is considered a more stable AI investment due to its diverse business segments.
- Broadcom is shipping its new Tomahawk 6 networking chip to boost AI workloads.
- AI-generated trading plans suggest potential short and long positions for Atrium Mortgage Investment Corporation.
Broadcom's AI business shines stock may keep rising
Broadcom's second-quarter earnings beat expectations, driven by strong growth in its AI business. Revenue increased 20% to $15 billion, and adjusted earnings per share rose 44% to $1.58. CEO Hock Tan expects strong AI revenue growth to continue into fiscal year 2026, supported by customers like Alphabet, Meta, and ByteDance. The company is increasing its stock price target to $290 per share, citing the company's strong position in AI chips and networking solutions.
Broadcom exceeds expectations with strong earnings and AI growth forecast
Broadcom's second-quarter earnings beat Wall Street estimates with $1.58 per share and $15 billion in revenue. The company expects $15.8 billion in revenue for the next quarter. Broadcom's AI revenue reached $4.4 billion, and they anticipate $5.1 billion in the third quarter. CEO Hock Tan highlighted progress in developing AI chips with major cloud customers and expects AI growth to continue through fiscal 2026.
Broadcom predicts higher revenue but stock dips slightly
Broadcom forecasts third-quarter revenue of about $15.80 billion, exceeding analysts' estimates. The company's shares fell 4% after hours, despite a 12% gain this year. Broadcom is shipping its new Tomahawk 6 networking chip to boost AI workloads. CEO Hock Tan expects AI semiconductor revenue to increase to $5.1 billion in the next quarter.
Broadcom's AI chip business soars non-AI lags behind
Broadcom's AI chip business is growing rapidly, while its non-AI chip business is slower. The company's AI chip revenue increased 46% to $4.4 billion. Broadcom expects total sales to rise 21% to $15.8 billion in the next quarter. They supply custom AI chips to Alphabet, Meta Platforms, and ByteDance, with potential new customers like Apple, Arm, OpenAI, and xAI.
AI trading signals for Atrium Mortgage Investment Corporation
AI-generated trading plans for Atrium Mortgage Investment Corporation (AI:CA) suggest buying near 10.79 with a target of 11.20 and a stop loss at 10.74. Short positions are recommended near 11.20, targeting 10.79, with a stop loss at 11.26. Ratings for June 5 indicate varying term strengths.
Altimeter Capital favors CoreWeave over Nvidia in AI stock picks
Brad Gerstner's Altimeter Capital reduced its Nvidia stake and sold its Micron and Taiwan Semiconductor holdings. Altimeter holds a significant position in CoreWeave (CRWV), an AI IPO stock. CoreWeave provides cloud computing infrastructure with Nvidia GPUs. Altimeter's investment in CoreWeave is valued at approximately $489 million.
Investors increase investments in robotics and AI companies
Wealth managers and institutional investors are increasing their investments in robotics, automation, and AI companies. A survey by Robocap found that 95% of professional investors expect allocations to robotics and physical AI to increase over the next three years. Almost 90% plan to increase their AI allocations. Robocap's thematic equity fund has delivered strong returns since its launch in 2016.
AI hyperscalers Nebius and CoreWeave stocks diverge
Nebius Group (NBIS) and CoreWeave (NASDAQ:CRWV), competing AI hyperscalers, experienced opposite stock movements today. Nebius shares surged 17%, while CoreWeave's stock sank 17%. Both companies have seen rapid stock increases recently.
Google AI now shows finance data with charts
Google's AI Mode in Labs now offers interactive charts for finance queries. Users can ask complex financial questions and receive visual charts with detailed explanations. The system uses Gemini's AI to analyze data and create custom responses. This feature may change how users find financial information online.
Sovereign AI hidden gem stock better than Nvidia
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Broadcom a safe AI stock for nervous investors
Broadcom's AI revenue is growing, but the company also has other businesses like mainframe and VMware. This mix makes it a more stable, but less pure, AI play. Nvidia is a more direct AI investment, but Broadcom's software exposure provides stability. Broadcom's diverse revenue streams can support its AI chip investments.
Kargo secures $18.4M for AI supply chain products
Kargo raised $18.4 million to develop AI-powered products for supply chains. The company offers Kargo Towers and Kargo Lifts, using AI cameras to gather freight data. Kargo's AI flags overages, shortages, and damage in real time. Armada Supply Chain Solutions uses Kargo's solution to improve inventory management.
Sources
- We're lifting our price target on Broadcom after its AI business impresses once again
- Broadcom beats on earnings and revenue
- Broadcom forecasts quarterly revenue above estimates
- Broadcom Latest AI Chipmaker To Outperform With Quarterly Results
- (AI) Trading Report (AI:CA) - Stock Traders Daily Canada
- Move Over Nvidia, Taiwan Semiconductor, and Micron. Brad Gerstner's Altimeter Capital Just Gave Investors 2,999,536 Reasons to Check Out the Hottest Artificial Intelligence (AI) IPO Stock of 2025 @themotleyfool #stocks $CRWV
- Survey Reveals Institutional Investors and Wealth Mnagers Are Increasing Their Exposure to AI
- Competing AI hyperscalers, Nebius and CoreWeave, make divergent moves (NBIS:NASDAQ)
- Google AI Mode Introduces Data Visualization For Finance Queries
- Want to Invest in Sovereign AI? This 1 Hidden-Gem Stock Could Be a Better Buy Than Nvidia.
- Broadcom is the right pick 'if you're a nervous AI investor'
- Kargo Raises $18.4 Million to Develop AI-Powered Products for Supply Chains