Broadcom earnings guide markets as Nvidia gains on Dell AI server momentum

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Broadcom and Nvidia drive AI market

Highlights

Investors focus on Broadcom's earnings and the possibility of upgraded AI semiconductor revenue guidance after last quarter's sell-off and Alphabet's Marvell deal.
Dell’s stronger-than-expected quarterly results and 40% increase in fiscal 2027 earnings guidance boost Nvidia shares, reinforcing confidence in AI demand.
The S&P 500 attempts to break a three-day losing streak as cash is deployed into new positions in Kimberly-Clark and BNY amid ongoing Middle East tensions.

Broadcom results and market positioning

As reported by CNBC, investors are watching Broadcom’s earnings for signs that management is ready to lift guidance after the stock sold off last quarter when the company only reiterated its fiscal 2026 outlook for AI semiconductor revenue.

Jeff Marks, portfolio director for the CNBC Investing Club, said a guidance increase is a key point for the market. He also said investors want more clarity on Broadcom’s relationship with Alphabet, its main custom chip customer, after Google’s parent struck a custom silicon deal with Marvell last month.

That supplier risk has remained an overhang for Broadcom, even though diversification by Alphabet has long been a concern rather than a new issue. Broadcom Chief Executive Hock Tan said in June that the company’s long-term agreement with Alphabet remains "very, very strong," a comment investors are likely to revisit as the company reports results.

AI demand and broader market signals

Nvidia shares are climbing after Dell posted stronger-than-expected quarterly results and raised fiscal 2027 earnings guidance by more than 40%. The update from Dell, whose AI server business is largely built around racks using Nvidia chips, is strengthening the view that the AI buildout is still moving ahead at full speed.

Jim Cramer said the market should not become too comfortable with Wednesday’s rebound because sentiment is still vulnerable to developments in the Middle East. The S&P 500 is attempting to break a three-day losing streak after pressure from higher oil prices and bond yields following renewed U.S. military strikes against Iran.

Against that backdrop, the club said it is putting some cash to work and plans to start new positions in Kimberly-Clark and BNY, formerly Bank of New York Mellon. Stocks also discussed in the session’s rapid-fire segment include Uber and Brown-Forman.

Our earlier article highlighted how rising oil prices, higher bond yields and renewed Middle East tension pushed investors into a more defensive stance. It also detailed portfolio shifts such as raising cash levels and trimming data-center exposure, while noting that strong AI-linked results (including from Dell) suggested demand was still intact despite broader market pressure.

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