Semiconductors

Hoping for positive run

With the semiconductor sector looking relatively weak lately, even a strong Broadcom earnings beat may only trigger a modest rally. I expect AVGO to gain around 1–3% initially, with a near-term target of $380, as high expectations may limit the upside.

Anthropic's 35 billion with Nvidia-backed lambda sparked concerns over "circular financing" once again, with primary concerns over capital flowing within the few top companies, and the overpromise and expectations that they will definitely do well without financial concerns. This could get rather problematic if and when, one of the companies in the circular financing starts getting into trouble with major technical pullback or face financial security concerns.

$Super Micro Computer(SMCI.US)

Context: In an effort to stand out from the crowd and get AI hardware in the hands of data centers, Cisco Systems is expanding its Secure AI Factory with Nvidia by including a partnership with Super Micro Computer. The Cisco AI Factory with Nvidia is a full-stack infrastructure system that helps companies build, deploy, and secure AI workloads. It combines AI infrastructure with full-stack security and is built to deliver faster agentic and physical AI applications. Cisco says with its partnership with Supermicro, customers will be able to deploy rack-to-fabric liquid cooling that features Cisco’s liquid-cooled AI networking systems alongside Supermicro’s liquid-cooled servers. Cisco expects to offer the solution in October.

My Trade: Still holding out in hopes for my rather ambitious profit target. Though it looks unlikely at least for now.

Takeaway: SMCI still has rooms for growth, and growing partnerships with companies outside of their main sector could diversify their revenue sources as well. @Captain's Treasure

Rate hike odds are currently inflated at around 60+% following Warsh's hawkish stance and that inflationary pressures are pushing the FED to make a decision sooner than expected. I expect a turbulent month of September for stocks, but I think this is just a mini wave crash, not the capsize of the boat.

I'm still more concerned about us core PCE inflation at 3.3% yoy, way higher than fed 2% target. esp. when we're close to the next FOMC 16 sept; a rate hike is looking real. that said, there's still enough time for good news that can delay the hike.

$Broadcom(AVGO.US) partnership with major hyperscalers and has history of beating earning expectations. Guessing it will continue to deliver good news in its revenue result. Predict price close to $375.

I have many of this on hand. To the moon. $500 again !

Broadcom’s (AVGO) upcoming fiscal Q3 2026 earnings forecast looks strong, mainly because of accelerating demand for AI chips and networking products. Broadcom is expected to report revenue of around $29.4–$29.5 billion, representing roughly 84–85% year-over-year growth, while adjusted EPS is forecast at approximately $3.24 per share. The company has guided for about $29.4 billion in Q3 revenue and expects AI semiconductor revenue to reach approximately $16 billion, more than doubling year over year. Looking further ahead, Broadcom expects AI semiconductor revenue to reach about $56 billion in fiscal 2026, with management targeting more than $100 billion in fiscal 2027. Overall, the earnings outlook remains very positive, although investors have high expectations, meaning the stock could react negatively if revenue, AI growth, margins, or future guidance falls short of expectations.