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Luke Kawa6/3/25

Broadcom hits all-time high after starting shipments of new AI hardware

Broadcom popped as much as 3.6% to a fresh all-time high on Tuesday after announcing that it’s now shipping Tomahawk 6 switch chips, which Senior Vice President Ram Velaga hailed as a “breakthrough” in making AI processing capabilities more efficient.

“It marks a turning point in AI infrastructure design, combining the highest bandwidth, power efficiency, and adaptive routing features for scale-up and scale-out networks into one platform,” Velaga said. “Demand from customers and partners has been unprecedented.”

The chip designer has played Robin to Nvidia’s Batman during the AI boom, seeing revenues soar more than 40% in 2024, with Wall Street anticipating growth north of 20% this year.

Broadcom is scheduled to report its second-quarter results after the close on Thursday, with analysts expecting adjusted earnings per share of $1.56 on revenues of a little less than $15 billion.

Wall Street thinks the “pain trade” is for AI stocks to keep soaring

Wall Street thinks the “pain trade” is for AI stocks to keep soaring

“It marks a turning point in AI infrastructure design, combining the highest bandwidth, power efficiency, and adaptive routing features for scale-up and scale-out networks into one platform,” Velaga said. “Demand from customers and partners has been unprecedented.”

The chip designer has played Robin to Nvidia’s Batman during the AI boom, seeing revenues soar more than 40% in 2024, with Wall Street anticipating growth north of 20% this year.

Broadcom is scheduled to report its second-quarter results after the close on Thursday, with analysts expecting adjusted earnings per share of $1.56 on revenues of a little less than $15 billion.

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Matt Phillips31m

Western Digital beats Wall Street estimates for Q2 sales, EPS

Western Digital posted better-than-expected quarterly sales and EPS figures after the close Thursday, though the shares slipped after hours.

Here’s how the results looked:

Fiscal Q2 revenue was $3.02 billion vs. $2.93 billion consensus analyst expectations, per FactSet.
Adjusted earnings per share of $2.13 vs. the $1.93 analysts predicted.
Fiscal Q3 guidance for adjusted EPS of $2.15 to $2.45 vs. analyst estimates of $1.99.
Guidance for Q3 sales of $3.1 billion to $3.3 billion vs. estimates of $2.98 billion.

Western Digital — and rival Seagate Technology Holdings — were among the market’s best performers last year, rising 282% and 219%, respectively, as data storage became a key bottleneck for hyperscalers.

The shares are romping into 2026 as well, with both stocks up more than 60% in January through the close of trading on Thursday.

Sandisk fiscal Q2 earnings results

Sandisk blows past quarterly earnings expectations, forecasts blockbuster Q3 numbers

It was the best performer in the S&P 500 last year. It’s already doubled in January. And shares are soaring after hours.

Matt Phillips52m

Tasha Matsumoto

Stocks fall as software slump drags down the tech sector

Meta, Microsoft, and Tesla all posted earnings beats after the bell yesterday, but market reaction was mixed on worries of ballooning capex.

Chicago Bears quarterback Dave Krieg shows dejection during a game against the Green Bay Packers on October 6, 1996 in Chicago. Green Bay won the game 37-6.

Southwest Airlines Announces It's Ending Its Open Seating

Southwest logs its biggest gain since 1978, as it says bag fees and seating changes will quadruple profit

Southwest shares closed up 19% on Thursday, their biggest daily gain in nearly half a century.

Max Knoblauch3h

markets

The slow burn in software stocks is erupting into an all-out bonfire

Good results? Doesn’t matter. Good guidance? Doesn’t matter. Spending a ton to augment your business with AI? You’d better believe it doesn’t matter.

This earnings season, investors have decided that AI is enough of a long-term threat to the earnings power of software companies that the past three months or the next 12 are, at best, the calm before the storm. And heaven help management teams that didn’t offer strong results or a positive outlook.

The slow burn in software stocks has erupted into an all-out bonfire on Thursday, fueled by traders finding any excuse to sell Microsoft and ServiceNow after both reported robust quarterly results. The follow-through is weighing on the likes of Atlassian, Workday, Salesforce, Datadog, and Intuit. Put it all together and iShares Expanded Tech Software ETF is poised for its worst day since the Friday following the Rose Garden reciprocal tariff announcements in April 2025.

Here’s how an assortment of software companies have done on the session after reporting earnings:

Are there babies being thrown out with the bathwater here? Maybe. Probably, even!

But it likely won’t inspire too much confidence to learn that the last time the S&P 500 Software & Services industry group was down at least 20% over a 63-session stretch while the SPDR S&P 500 ETF was positive happened to be June 12, 2000.

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