Earnings Outlook for the First Week of March
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy AVGO?
Source: seekingalpha
- Plug Power Earnings Forecast: Plug Power (PLUG) is set to report Q4 earnings on March 2, with analysts projecting a 93% year-over-year profit increase and about 14% revenue growth, which will aid the company's focus on hydrogen and fuel cell production.
- CrowdStrike Partnership Expansion: CrowdStrike (CRWD) is due to post its Q4 financial update on March 3, with a recent partnership with Microsoft allowing its Falcon platform to be sold through the Azure Marketplace, expected to enhance market share and enterprise integration.
- Broadcom AI Momentum: Broadcom (AVGO) is anticipated to report FQ1 results on March 4, with analysts expecting revenue and earnings to rise over 25% year-over-year, and plans to sell at least 1 million chips by 2027, indicating strong momentum in the AI sector.
- Costco Steady Growth: Costco (COST) will report FQ2 results on March 5, with expectations of steady revenue and profit growth, as January same-store sales rose 7.1%, demonstrating its appeal to higher-income consumers.
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Analyst Views on AVGO
Wall Street analysts forecast AVGO stock price to rise
30 Analyst Rating
29 Buy
1 Hold
0 Sell
Strong Buy
Current: 321.700
Low
370.00
Averages
457.75
High
525.00
Current: 321.700
Low
370.00
Averages
457.75
High
525.00
About AVGO
Broadcom Inc. is a global technology firm that designs, develops, and supplies a range of semiconductors, enterprise software and security solutions. The Company operates through two segments: semiconductor solutions and infrastructure software. Its semiconductor solutions segment includes all of its product lines and intellectual property (IP) licensing. It provides a variety of radio frequency semiconductor devices, wireless connectivity solutions, custom touch controllers, and inductive charging solutions for mobile applications. Its infrastructure software segment includes its private and hybrid cloud, application development and delivery, software-defined edge, application networking and security, mainframe, distributed and cybersecurity solutions, and its FC SAN business. It provides a portfolio of software solutions that enable customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Broadcom Expects to Sell 1 Million Chips by 2027
- Sales Projection: A Broadcom executive stated that the company expects to sell at least 1 million chips by 2027 based on its stacked design technology, which enhances data transfer speeds and strengthens its competitive position in the market.
- Earnings Outlook: Wall Street anticipates that Broadcom will report a 22.4% year-over-year revenue increase to $19.1 billion for its first quarter of fiscal year 2026, indicating strong market demand and growth potential for the company.
- Technological Innovation: Broadcom announced it has begun shipping the industry's first 2nm custom compute SoC built on its 3.5D eXtreme Dimension System in Package (XDSiP) platform, which offers superior power efficiency and low latency to meet the computational demands of gigawatt-scale AI clusters.
- Market Reaction: Broadcom's shares have risen nearly 53% over the past year, with retail sentiment around AVGO trending bullish, reflecting market confidence in the company's future growth prospects.
See More
Earnings Outlook for the First Week of March
- Plug Power Earnings Forecast: Plug Power (PLUG) is set to report Q4 earnings on March 2, with analysts projecting a 93% year-over-year profit increase and about 14% revenue growth, which will aid the company's focus on hydrogen and fuel cell production.
- CrowdStrike Partnership Expansion: CrowdStrike (CRWD) is due to post its Q4 financial update on March 3, with a recent partnership with Microsoft allowing its Falcon platform to be sold through the Azure Marketplace, expected to enhance market share and enterprise integration.
- Broadcom AI Momentum: Broadcom (AVGO) is anticipated to report FQ1 results on March 4, with analysts expecting revenue and earnings to rise over 25% year-over-year, and plans to sell at least 1 million chips by 2027, indicating strong momentum in the AI sector.
- Costco Steady Growth: Costco (COST) will report FQ2 results on March 5, with expectations of steady revenue and profit growth, as January same-store sales rose 7.1%, demonstrating its appeal to higher-income consumers.
See More
US Stock Market Review and Outlook
- Market Performance Review: The S&P 500 closed at 6,878.88 on Friday, logging a weekly loss of about 0.5%, while maintaining a roughly 0.5% gain year-to-date, indicating cautious market sentiment and volatility.
- Job Data Expectations: Economists predict that the US economy added 60,000 jobs in February, a significant slowdown from 130,000 in January, which could have important implications for market confidence and the Federal Reserve's interest rate policy.
- Tech Stock Pressure: Despite Nvidia exceeding analyst expectations with its earnings report, its stock fell approximately 6% post-report, reflecting heightened investor concerns about the AI sector and a shift towards risk aversion in the market.
- Geopolitical Impact: Ongoing tensions between the US and Iran have increased uncertainty for investors, particularly following the US embassy's authorization for nonessential personnel to leave Jerusalem, further exacerbating market risk aversion.
See More
Investment Opportunities in AI Infrastructure
- Surging Power Demand: Research from Rand Corp. estimates that global AI data center power demand will reach 68 gigawatts by next year and grow to 327 gigawatts by 2030, presenting substantial market opportunities for companies involved in energy supply.
- NextEra Energy's Growth Potential: NextEra Energy is collaborating with Google Cloud to build multiple AI data centers, aiming to deliver an additional 15 gigawatts of power by 2035, with 6 gigawatts sourced from gas, which is expected to significantly boost the company's growth in the coming years.
- Credo Technology's Market Edge: Credo Technology's Active Electrical Cables (AECs) enhance data transmission efficiency by reducing signal degradation and power consumption, and its recent partnership with TensorWave solidifies its critical role in AI infrastructure.
- Strong Financial Performance: NextEra Energy reported a full-year net income of $2.97 billion, up 29.1% year-over-year, with earnings per share at $1.44, and expects a compound annual growth rate of at least 8% through 2032, indicating a robust financial foundation amid rising AI demand.
See More
Meta Secures Strategic Deal with AMD for GPUs and CPUs
- Deal Details: Meta will purchase 6 gigawatts of AMD's graphics processing units (GPUs) and become a lead customer for AMD's sixth-generation EPYC central processing units (CPUs), showcasing Meta's strong demand and strategic positioning in the AI sector.
- Equity Incentives: As part of the deal, Meta will receive warrants for up to 160 million shares of AMD, representing about a 10% stake based on current share count, providing Meta with potential future equity appreciation.
- Supply Chain Diversification: By collaborating with both AMD and Nvidia, Meta aims to reduce reliance on a single supplier, thereby lowering costs through a diversified source of AI chips, enhancing its data center competitiveness.
- Financial Performance: Meta's revenue grew by 24% last quarter, reflecting strong returns on its AI investments, and with a forward P/E of 21 times, it appears highly attractive in the current market environment.
See More
Meta Acquires 10% Stake in AMD Amid AI Expansion
- Strategic Investment: Meta has entered into an agreement with AMD to purchase 6 gigawatts of graphics processing units (GPUs) and become a lead customer for AMD's sixth-generation EPYC central processing units (CPUs), which is expected to significantly enhance Meta's computing capabilities in the AI sector.
- Equity Stake: Meta will receive warrants for up to 160 million shares of AMD, which represents about a 10% stake based on current share counts, providing Meta with a more cost-effective chip procurement strategy.
- Capital Expenditure Plans: Meta plans to invest between $115 billion and $135 billion in capital expenditures in 2023, demonstrating a significant strategic commitment to AI technology aimed at reducing reliance on Nvidia and diversifying its supply chain.
- Financial Attractiveness: With a forward P/E ratio of 21 times, coupled with its nearly $35 billion investment in AMD, Meta's stock appears attractive at current levels, potentially making it a top choice for investors.
See More
Broadcom Expects to Sell 1 Million Chips by 2027
- Sales Projection: A Broadcom executive stated that the company expects to sell at least 1 million chips by 2027 based on its stacked design technology, which enhances data transfer speeds and strengthens its competitive position in the market.
- Earnings Outlook: Wall Street anticipates that Broadcom will report a 22.4% year-over-year revenue increase to $19.1 billion for its first quarter of fiscal year 2026, indicating strong market demand and growth potential for the company.
- Technological Innovation: Broadcom announced it has begun shipping the industry's first 2nm custom compute SoC built on its 3.5D eXtreme Dimension System in Package (XDSiP) platform, which offers superior power efficiency and low latency to meet the computational demands of gigawatt-scale AI clusters.
- Market Reaction: Broadcom's shares have risen nearly 53% over the past year, with retail sentiment around AVGO trending bullish, reflecting market confidence in the company's future growth prospects.
See More
Earnings Outlook for the First Week of March
- Plug Power Earnings Forecast: Plug Power (PLUG) is set to report Q4 earnings on March 2, with analysts projecting a 93% year-over-year profit increase and about 14% revenue growth, which will aid the company's focus on hydrogen and fuel cell production.
- CrowdStrike Partnership Expansion: CrowdStrike (CRWD) is due to post its Q4 financial update on March 3, with a recent partnership with Microsoft allowing its Falcon platform to be sold through the Azure Marketplace, expected to enhance market share and enterprise integration.
- Broadcom AI Momentum: Broadcom (AVGO) is anticipated to report FQ1 results on March 4, with analysts expecting revenue and earnings to rise over 25% year-over-year, and plans to sell at least 1 million chips by 2027, indicating strong momentum in the AI sector.
- Costco Steady Growth: Costco (COST) will report FQ2 results on March 5, with expectations of steady revenue and profit growth, as January same-store sales rose 7.1%, demonstrating its appeal to higher-income consumers.
See More
US Stock Market Review and Outlook
- Market Performance Review: The S&P 500 closed at 6,878.88 on Friday, logging a weekly loss of about 0.5%, while maintaining a roughly 0.5% gain year-to-date, indicating cautious market sentiment and volatility.
- Job Data Expectations: Economists predict that the US economy added 60,000 jobs in February, a significant slowdown from 130,000 in January, which could have important implications for market confidence and the Federal Reserve's interest rate policy.
- Tech Stock Pressure: Despite Nvidia exceeding analyst expectations with its earnings report, its stock fell approximately 6% post-report, reflecting heightened investor concerns about the AI sector and a shift towards risk aversion in the market.
- Geopolitical Impact: Ongoing tensions between the US and Iran have increased uncertainty for investors, particularly following the US embassy's authorization for nonessential personnel to leave Jerusalem, further exacerbating market risk aversion.
See More
Investment Opportunities in AI Infrastructure
- Surging Power Demand: Research from Rand Corp. estimates that global AI data center power demand will reach 68 gigawatts by next year and grow to 327 gigawatts by 2030, presenting substantial market opportunities for companies involved in energy supply.
- NextEra Energy's Growth Potential: NextEra Energy is collaborating with Google Cloud to build multiple AI data centers, aiming to deliver an additional 15 gigawatts of power by 2035, with 6 gigawatts sourced from gas, which is expected to significantly boost the company's growth in the coming years.
- Credo Technology's Market Edge: Credo Technology's Active Electrical Cables (AECs) enhance data transmission efficiency by reducing signal degradation and power consumption, and its recent partnership with TensorWave solidifies its critical role in AI infrastructure.
- Strong Financial Performance: NextEra Energy reported a full-year net income of $2.97 billion, up 29.1% year-over-year, with earnings per share at $1.44, and expects a compound annual growth rate of at least 8% through 2032, indicating a robust financial foundation amid rising AI demand.
See More
Meta Secures Strategic Deal with AMD for GPUs and CPUs
- Deal Details: Meta will purchase 6 gigawatts of AMD's graphics processing units (GPUs) and become a lead customer for AMD's sixth-generation EPYC central processing units (CPUs), showcasing Meta's strong demand and strategic positioning in the AI sector.
- Equity Incentives: As part of the deal, Meta will receive warrants for up to 160 million shares of AMD, representing about a 10% stake based on current share count, providing Meta with potential future equity appreciation.
- Supply Chain Diversification: By collaborating with both AMD and Nvidia, Meta aims to reduce reliance on a single supplier, thereby lowering costs through a diversified source of AI chips, enhancing its data center competitiveness.
- Financial Performance: Meta's revenue grew by 24% last quarter, reflecting strong returns on its AI investments, and with a forward P/E of 21 times, it appears highly attractive in the current market environment.
See More
Meta Acquires 10% Stake in AMD Amid AI Expansion
- Strategic Investment: Meta has entered into an agreement with AMD to purchase 6 gigawatts of graphics processing units (GPUs) and become a lead customer for AMD's sixth-generation EPYC central processing units (CPUs), which is expected to significantly enhance Meta's computing capabilities in the AI sector.
- Equity Stake: Meta will receive warrants for up to 160 million shares of AMD, which represents about a 10% stake based on current share counts, providing Meta with a more cost-effective chip procurement strategy.
- Capital Expenditure Plans: Meta plans to invest between $115 billion and $135 billion in capital expenditures in 2023, demonstrating a significant strategic commitment to AI technology aimed at reducing reliance on Nvidia and diversifying its supply chain.
- Financial Attractiveness: With a forward P/E ratio of 21 times, coupled with its nearly $35 billion investment in AMD, Meta's stock appears attractive at current levels, potentially making it a top choice for investors.
See More
