The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
Market research firm IDC forecasts that AI spending will grow from $235 billion this year to $631 billion by 2028. Chipmakers Broadcom and Qualcomm stand to benefit from growing on-device processing needs and data center expansion.
Other key reports in the week ahead will arrive from Dick's Sporting Goods, Dollar Tree and Zscaler.
Markets will be closed for the Labor Day holiday on Monday. After that, investors will be focused on key labor market data, primarily the Friday release of the August jobs report.
Equity and fixed-income markets are closed on Monday for Labor Day. The second-quarter earnings season ends with Broadcom's report.
Broadcom has built its business through a series of acquisitions. The company has a huge opportunity with the ongoing AI infrastructure buildout.
Broadcom's growing prominence in the market for custom AI processors and networking switches could help it deliver better-than-expected results. The long-term AI opportunity that Broadcom is sitting on suggests that it is built for impressive growth.
Broadcom (AVGO) is set to report earnings for the third quarter of 2024 after the closing bell on Thursday with artificial intelligence (AI) likely to take center stage.
Broadcom (NASDAQ:AVGO) has long been a top smartphone chip supplier but it is rapidly transforming into a premier artificial intelligence chipmaker.
The company's stock was lifted after it posted upbeat numbers, which should bode well for its chief rival.
Broadcom competes with Nvidia in some products but has complimentary products as well. Broadcom has many different business segments.
Nvidia completed a 10-for-1 stock split in June 2024, and the company has a durable competitive advantage spanning hardware and software. Broadcom completed a 10-for-1 stock split in July 2024, and the company is growing quickly due to demand for AI chips and virtualization software.