Broadcom Earnings Provide Next Test of Resolve for AI Rally
- Stock has gained rapidly following December’s earnings
- Bar for earnings seen as high given stock performance
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Pressure is on Broadcom Inc. ahead of Thursday’s earnings to show investors that AI demand will offset a slump in computer and telephone sales.
With a gain of more than 50% since its last quarterly report, the stakes have ratcheted up for the Palo Alto, California-based company at a time when the likes of Advanced Micro Devices Inc. and Super Micro Computer Inc. have been bid up on expectations that demand for hardware used in AI computing is just beginning. Broadcom’s shares rose as much as 3.7% in intraday trading.