Markets
markets
Luke Kawa

Broadcom soars after earnings beat, sunny revenue guidance

Broadcom reported better-than-expected profits and a revenue outlook to match, sending shares sharply higher in after-hours trading.

For its fiscal first quarter, the chip designer booked earnings per share of $1.60, $0.10 above the consensus estimate, along with a positive surprise for its adjusted gross margin of 79.1%. (Nvidia, on the other hand, is showing signs of softness in this metric.)

AI sales were big for Broadcom in the quarter: at $4.1 billion, this trounced the consensus estimate of $3.73 billion by about 10%.

“We expect continued strength in AI semiconductor revenue of $4.4 billion in Q2, as hyperscale partners continue to invest in AI XPUs and connectivity solutions for AI data centers,” CEO and President Hock Tan said.

But with the market taking a what-have-you-done-for-me-lately approach to AI names, it’s the second-quarter guidance that’s really fueling a bid for the stock. Broadcom anticipates generating about $14.9 billion in revenue versus the consensus estimate of $14.6 billion. The adjusted EBITDA guidance of about $9.93 billion for Q2 also came in $200 million above the Street’s expectations.

Shares had sold off hard on Thursday ahead of the report, as Marvell Technologies — which also sells customized advanced semiconductors to the hyperscalers — posted underwhelming guidance after the close on Wednesday.

It’s been a while since we’ve seen an unabashedly positive market reaction to semiconductor earnings!

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Nia Warfield, Luke Kawa
6h
US stocks end a down week with a gain

An up day but a down week for the benchmark US stock index.

Cowboy Riding Bucking Steer
markets
Luke Kawa

Crocs rises on new marketing campaign for HeyDude brand starring Sydney Sweeney


Sydney Sweeney has great... feet?

Shares of Crocs are rising after the footwear company’s HeyDude brand unveiled a new marketing effort starring actress Sydney Sweeney for its Austin Lift shoe line.

Sweeney’s controversial ad campaign for American Eagle spurred a massive jump in the denim maker’s shares, caught the attention of the president, and prompted “an uptick in customer awareness, engagement, and comparable sales,” per American Eagle’s management.

Sweeney was first announced as HeyDude’s global spokesperson in August 2024, and doesn’t seem to have given the brand a major boost so far.

Max Knoblauch
10h

Ford and GM reach 52-week highs as EPA seeks to repeal emissions rules

Shares of Ford and GM are each trading at 52-week highs on Friday, as investors pile into gas-powered US automakers with the looming end of the EV tax credit and the Trump administration’s potential repeal of vehicle emissions standards.

A lobby representing Ford, GM, and nearly all other major automakers has expressed support for the EPA’s proposal to repeal the long-standing endangerment finding that declared greenhouse gases a threat to human life. The finding provides the legal foundation for the EPA to regulate vehicle emissions.

Yesterday, EV giant Tesla urged the Trump administration to keep the standards in place.

Friday afternoon saw Ford shares reach their highest level since July 2024, while GM’s stock hit highs not seen since January 2022.

Citi equity analysts on the key valuation issue facing the market.

Citi’s US market analyst on the key valuation test facing the market

“It kind of comes down to, what inning do you think we are in this AI game?”

Matt Phillips12h
markets
Luke Kawa

GameStop surges as company offers promotions to boost launch of “Pokémon” Mega Evolution set

GameStop is jumping as the company offers promotions to boost interest for today’s North American launch of the Mega Evolution set of the “Pokémon Trading Card Game.”

Options activity is a little more tilted to the bull side than usual. Over the past month, a little less than four calls have changed hands for every put option. As of 10:22 a.m. ET, that ratio is over five to one.

It’s a big day for collectibles fans and gamers alike: beyond the “Pokémon TCG” drop, there are also new collections from “Yu-Gi-Oh!” and “Magic: The Gathering” being released and “EA SPORTS FC 26,” as well.

As we’ve written, “Pokémon” trading cards have been skyrocketing in value, and GameStop’s collectibles business has been accelerating. These are two sides of the same coin.

Mega Gardevoir... here I come!

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