Broadcom Rallies on AI Expectations Ahead of Thursday’s Earnings Results

Shares of Broadcom (AVGO) surged +29% in May, its largest monthly gain ever, as the frenzy over artificial intelligence (AI) sent the stock soaring. The markets will focus on Broadcom’s quarterly earnings results after the close of trading today to see if AI has actually boosted the company’s sales. 

Broadcom is up +45% this year, outperforming the Philadelphia Stock Exchange Semiconductor Index ($SOX) but well below the gains seen in stocks with direct exposure to AI, such as Nvidia (NVDA) and Advanced Micro Devices (AMD).  Deepwater Asset Management thinks Broadcom will end up among the AI winners but warned that today’s earnings results “aren’t going to show a shot in the heart of growth, and any investors expecting the same wicked adrenaline as Nvidia will be disappointed.”