🎁Broadcom faces an "emotional test" after hours on Wednesday? Will its earnings performance help reverse the stock price?
Last week, NVIDIA, the AI leader, delivered a "nearly flawless" report card — revenue and profits both exceeded expectations, guidance was raised, and CEO Jensen Huang reiterated strong ongoing demand. However, the market responded with cold selling: $NVIDIA (NVDA.US)$ Thursday and Friday saw consecutive drops of about 9%, with a cumulative weekly loss of over 6%.
The issue isn't the earnings; it's sentiment.As analysts have pointed out, the market’s attitude towards the AI narrative is undergoing a fundamental shift:AI is transitioning from being viewed as an "opportunity" to being reassessed as a "risk."Investors are starting to avoid sectors with high valuations and overcrowding, rather than blindly chasing anything with an AI label.Capital analyst Kyle Rodda: "Nvidia's Q4 figures were almost impeccable. Despite excellent results, we're seeing an increasingly entrenched shift in market sentiment and behavior, with AI now perceived as a risk rather than an opportunity. Investors are more focused on avoiding losers rather than picking winners amid concerns over lofty valuations and overinvestment."
This is the harsh test that Broadcom is about to face.
After the market close on March 4, Eastern Time, $Broadcom (AVGO.US)$Broadcom will release its first-quarter results for the fiscal year 2026.The market expects revenue of $19.113 billion, a year-over-year increase of 28%, and earnings per share of $1.40, reflecting a 20% year-over-year growth.In the current market sentiment where even NVIDIA's 'star student' performance wasn't spared, what kind of results will Broadcom deliver?
![Last week, NVIDIA, the AI leader, delivered a "nearly flawless" report card — revenue and profits both exceeded expectations, guidance was raised, and CEO Jensen Huang reiterated strong ongoing demand. However, the market responded with cold selling: $NVIDIA (NVDA.US)$ Thursday and Friday saw consecutive drops of about 9%, with a cumulative weekly loss of over 6%.[Sob] [Surprise]The issue isn't the earnings; it's sentiment.As analysts have pointed out, the market’s attitude towards the AI narrative is undergoing a fundamental shift:AI is transitioning from being viewed as an "opportunity" to being reassessed as a "risk."Investors are starting to avoid sectors with high valuations and overcrowding, rather than blindly chasing anything with an AI label. Capital analyst Kyle Rodda: "Nvidia's Q4 figures were almost impeccable. Despite excellent results, we're seeing an increasingly entrenched shift in market sentiment and behavior, with AI now perceived as a risk rather than an opportunity. Investors are more focused on avoiding losers rather than picking winners amid concerns over lofty valuations and overinvestment." This is the harsh test that Broadcom is about to face.[Panic] After the market close on March 4, Eastern Time, $Broadcom (AVGO.US)$Broadcom will release its first-quarter results for the fiscal year 2026.The market expects revenue of $19.113 billion, a year-over-year increase of 28%, and earnings per share of $1.40, reflecting a 20% year-over-year growth.In the current market sentiment where even NVIDIA's 'star student' performance wasn't spared, what kind of results will Broadcom deliver? 🔍 Three key uncertainties will determine stock price direction [Shocked]Suspended...](https://nnqimage.futunn.com/sns_client_feed/999982/20260302/web-1772455795051-LvUgFawMKn.webp/big?area=2&is_public=true&imageMogr2/ignore-error/1/format/webp)
🔍 Three key uncertainties will determine stock price direction
Suspense one: Will the $73 billion order backlog continue to 'grow'? Last quarter, Broadcom disclosed AI-related backlog orders exceeding $73 billion (to be delivered within the next 18 months), with management referring to it as the 'minimum guarantee for AI revenue over the next six quarters.' However, the market was not satisfied at the time.Whether this can further increase the order scale will be the key to testing the resilience of AI demand.
Suspense Two: Gross margin under pressure, is it a concern or a misunderstanding?As the proportion of ASIC shipments increases, a decline in gross margin is inevitable. However, under the ASIC model, shared R&D costs mean operating profit margins are expected to rise. Market concerns have partially eased.This time, we need to assess the actual erosion and management’s long-term positioning.
Suspense Three: Software business, the profit pillar, could it face an AI backlash?Infrastructure software contributes nearly half of the profits, with a gross margin as high as 93%. But Q1 is the off-season for renewals, compounded by the narrative of 'AI eating software.'Can management's outlook for low double-digit growth for the year hold?
![Last week, NVIDIA, the AI leader, delivered a "nearly flawless" report card — revenue and profits both exceeded expectations, guidance was raised, and CEO Jensen Huang reiterated strong ongoing demand. However, the market responded with cold selling: $NVIDIA (NVDA.US)$ Thursday and Friday saw consecutive drops of about 9%, with a cumulative weekly loss of over 6%.[Sob] [Surprise]The issue isn't the earnings; it's sentiment.As analysts have pointed out, the market’s attitude towards the AI narrative is undergoing a fundamental shift:AI is transitioning from being viewed as an "opportunity" to being reassessed as a "risk."Investors are starting to avoid sectors with high valuations and overcrowding, rather than blindly chasing anything with an AI label. Capital analyst Kyle Rodda: "Nvidia's Q4 figures were almost impeccable. Despite excellent results, we're seeing an increasingly entrenched shift in market sentiment and behavior, with AI now perceived as a risk rather than an opportunity. Investors are more focused on avoiding losers rather than picking winners amid concerns over lofty valuations and overinvestment." This is the harsh test that Broadcom is about to face.[Panic] After the market close on March 4, Eastern Time, $Broadcom (AVGO.US)$Broadcom will release its first-quarter results for the fiscal year 2026.The market expects revenue of $19.113 billion, a year-over-year increase of 28%, and earnings per share of $1.40, reflecting a 20% year-over-year growth.In the current market sentiment where even NVIDIA's 'star student' performance wasn't spared, what kind of results will Broadcom deliver? 🔍 Three key uncertainties will determine stock price direction [Shocked]Suspended...](https://nnqimage.futunn.com/sns_client_feed/999982/20260302/web-1772460679725-fQCGxFadxR.png/big?area=2&is_public=true&imageMogr2/ignore-error/1/format/webp)
On December 12, 2025, Broadcom released a 'comprehensive beat' earnings report but suffered an 11.43% brutal crash, wiping out over $120 billion in market value.
What happened? Revenue of $18.02 billion beat expectations, AI revenue surged 74%, and the backlog for the next 18 months reached $73 billion. However, what the market focused on was something else: management did not raise its full-year AI revenue guidance for fiscal 2026. Goldman Sachs noted that investors had already built optimistic long positions, and this 'missing guidance update' triggered a sentiment reversal.
More critically, there is a reevaluation of the "gold content" of AI businesses. Declining AI gross margins, excessive customer concentration, and weak bargaining power for custom chips—risks that were once masked by high growth—have overnight become reasons for sell-offs.
Entering 2026, $Broadcom (AVGO.US)$the stock price continues to fluctuate, gradually declining. As of the pre-market on March 2, the stock price stood at $309.28, down nearly 10% year-to-date.
![Last week, NVIDIA, the AI leader, delivered a "nearly flawless" report card — revenue and profits both exceeded expectations, guidance was raised, and CEO Jensen Huang reiterated strong ongoing demand. However, the market responded with cold selling: $NVIDIA (NVDA.US)$ Thursday and Friday saw consecutive drops of about 9%, with a cumulative weekly loss of over 6%.[Sob] [Surprise]The issue isn't the earnings; it's sentiment.As analysts have pointed out, the market’s attitude towards the AI narrative is undergoing a fundamental shift:AI is transitioning from being viewed as an "opportunity" to being reassessed as a "risk."Investors are starting to avoid sectors with high valuations and overcrowding, rather than blindly chasing anything with an AI label. Capital analyst Kyle Rodda: "Nvidia's Q4 figures were almost impeccable. Despite excellent results, we're seeing an increasingly entrenched shift in market sentiment and behavior, with AI now perceived as a risk rather than an opportunity. Investors are more focused on avoiding losers rather than picking winners amid concerns over lofty valuations and overinvestment." This is the harsh test that Broadcom is about to face.[Panic] After the market close on March 4, Eastern Time, $Broadcom (AVGO.US)$Broadcom will release its first-quarter results for the fiscal year 2026.The market expects revenue of $19.113 billion, a year-over-year increase of 28%, and earnings per share of $1.40, reflecting a 20% year-over-year growth.In the current market sentiment where even NVIDIA's 'star student' performance wasn't spared, what kind of results will Broadcom deliver? 🔍 Three key uncertainties will determine stock price direction [Shocked]Suspended...](https://nnqimage.futunn.com/sns_client_feed/999982/20260302/web-1772457011597-BkiBID2Ykh.webp/big?area=2&is_public=true&imageMogr2/ignore-error/1/format/webp)
Following NVIDIA’s precedent of "falling despite good earnings," market sentiment towards AI chips has become fragile and selective. Broadcom's current earnings report leaves little room for error: exceeding expectations might not lead to gains, but falling short could result in even greater downward pressure.However, UBS Group believes the previous plunge was an "overreaction" and forecasts AI semiconductor revenue for the fiscal year 2026 to exceed $60 billion, with nearly threefold year-over-year growth.
So, after enduring the turbulence, can this earnings release bring about a reversal?Come cast your vote and share your thoughts!
Come cast your vote and share your thoughts![Prize Activity]📈 Participate in voting predictions $Broadcom (AVGO.US)$Opening price range on March 5 at 9:30 AM EST (10:30 PM Beijing Time); those who guess correctly will evenly split10,000 points!
(For instance, if 10 fellow investors guess correctly, each will receive 1,000 points)
As Wednesday’s US stock market closes, will the second act of AI computing power following NVIDIA begin or end?Share your insights in the comment section—write over 30 words with sound reasoning to earn 66 points!Note: The prize event will end at 5:00 AM Beijing Time on March 5, and rewards can be stacked; prizes will be distributed after this earnings season concludes.
The leading AI company faces its earnings report—how to deploy strategies easily? “Earnings Express” highlights key points with AI, guiding you through a three-step options strategy >>
![Last week, NVIDIA, the AI leader, delivered a "nearly flawless" report card — revenue and profits both exceeded expectations, guidance was raised, and CEO Jensen Huang reiterated strong ongoing demand. However, the market responded with cold selling: $NVIDIA (NVDA.US)$ Thursday and Friday saw consecutive drops of about 9%, with a cumulative weekly loss of over 6%.[Sob] [Surprise]The issue isn't the earnings; it's sentiment.As analysts have pointed out, the market’s attitude towards the AI narrative is undergoing a fundamental shift:AI is transitioning from being viewed as an "opportunity" to being reassessed as a "risk."Investors are starting to avoid sectors with high valuations and overcrowding, rather than blindly chasing anything with an AI label. Capital analyst Kyle Rodda: "Nvidia's Q4 figures were almost impeccable. Despite excellent results, we're seeing an increasingly entrenched shift in market sentiment and behavior, with AI now perceived as a risk rather than an opportunity. Investors are more focused on avoiding losers rather than picking winners amid concerns over lofty valuations and overinvestment." This is the harsh test that Broadcom is about to face.[Panic] After the market close on March 4, Eastern Time, $Broadcom (AVGO.US)$Broadcom will release its first-quarter results for the fiscal year 2026.The market expects revenue of $19.113 billion, a year-over-year increase of 28%, and earnings per share of $1.40, reflecting a 20% year-over-year growth.In the current market sentiment where even NVIDIA's 'star student' performance wasn't spared, what kind of results will Broadcom deliver? 🔍 Three key uncertainties will determine stock price direction [Shocked]Suspended...](https://nnqimage.futunn.com/sns_client_feed/999982/20260302/web-1772462210722-OOWVdpFh9H.webp/big?area=2&is_public=true&imageMogr2/ignore-error/1/format/webp)
![Last week, NVIDIA, the AI leader, delivered a "nearly flawless" report card — revenue and profits both exceeded expectations, guidance was raised, and CEO Jensen Huang reiterated strong ongoing demand. However, the market responded with cold selling: $NVIDIA (NVDA.US)$ Thursday and Friday saw consecutive drops of about 9%, with a cumulative weekly loss of over 6%.[Sob] [Surprise]The issue isn't the earnings; it's sentiment.As analysts have pointed out, the market’s attitude towards the AI narrative is undergoing a fundamental shift:AI is transitioning from being viewed as an "opportunity" to being reassessed as a "risk."Investors are starting to avoid sectors with high valuations and overcrowding, rather than blindly chasing anything with an AI label. Capital analyst Kyle Rodda: "Nvidia's Q4 figures were almost impeccable. Despite excellent results, we're seeing an increasingly entrenched shift in market sentiment and behavior, with AI now perceived as a risk rather than an opportunity. Investors are more focused on avoiding losers rather than picking winners amid concerns over lofty valuations and overinvestment." This is the harsh test that Broadcom is about to face.[Panic] After the market close on March 4, Eastern Time, $Broadcom (AVGO.US)$Broadcom will release its first-quarter results for the fiscal year 2026.The market expects revenue of $19.113 billion, a year-over-year increase of 28%, and earnings per share of $1.40, reflecting a 20% year-over-year growth.In the current market sentiment where even NVIDIA's 'star student' performance wasn't spared, what kind of results will Broadcom deliver? 🔍 Three key uncertainties will determine stock price direction [Shocked]Suspended...](https://nnqimage.futunn.com/sns_client_feed/999982/20260302/web-1772462210475-B0Nrtw2Ltn.webp/big?area=2&is_public=true&imageMogr2/ignore-error/1/format/webp)
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