Stock market today: Dow, S&P 500 head for losing week, Broadcom surges after earnings

Published On Dec 13, 2024, 9:30 AM

Broadcom's stock has surged after the company reported a strong earnings forecast, predicting a 65% increase in AI-driven sales, pushing its market cap over $1 trillion for the first time. Despite this, overall stock market indices like the Dow and S&P 500 are heading for a losing week, with the Dow set for its longest losing streak since February 2020. Other semiconductor stocks such as Marvell Technology and Taiwan Semiconductor also saw gains following Broadcom's positive outlook, although the broader market struggled due to ongoing concerns over inflation and its impact on rates from the Federal Reserve.

Read full article

Stock Forecasts

AVGOView AVGO chart on TradingView

Positive

Broadcom's strong performance and robust AI forecast suggest significant growth potential in the semiconductor sector, particularly for companies involved in AI technology. Investors may want to consider entering into Broadcom stocks or similar semiconductor companies that are benefiting from this trend in AI and demand for chips.

SPYView SPY chart on TradingView

Negative

The broader market is facing downward pressure with ongoing inflation concerns and the potential for tighter monetary policy. This suggests a generally negative outlook for the market as investors may become cautious.

Related News

Broadcom Soars Most Since 2020 to Top $1 Trillion Valuation

Dec 13, 2024, 9:43 AM

(Bloomberg) -- Broadcom Inc., a chip supplier for Apple Inc. and other big tech companies, surged to a $1 trillion market valuation for the first time after predicting a boom in demand for its artificial intelligence chips.Most Read from BloombergHong Kong's Expat Party Hub Reshaped by Chinese InfluxBrace for a Nationwide Shuffle of Corporate HeadquartersCity Hall Is HiringAmerican Institute of Architects CEO ResignsCloud Computing Tax Threatens Chicago’s Silicon Valley DreamSales of AI products

AVGO

Broadcom forecasts Q1 revenue above estimates on strong AI chip demand

Dec 13, 2024, 4:13 AM

(Reuters) -Broadcom forecast quarterly revenue above Wall Street estimates on Thursday and predicted booming demand for its custom artificial intelligence chips in the next few years. Shares of the Palo Alto, California-based company were up 14% in aftermaket trade after CEO Hock Tan told investors on a conference call he expects a revenue opportunity from AI in the range of $60 billion to $90 billion in fiscal 2027. Tan indicated three "hyperscale" customers are likely to deploy millions of AI chip clusters at the time.

AVGO

Dow futures are little changed after index posts longest losing streak since April: Live updates

Dec 12, 2024, 6:03 PM

The Dow Jones Industrial Average dropped for a sixth consecutive day, notching its longest losing streak since April.

AVGO
RH