(Bloomberg) — 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.
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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.
Scrutiny is on such firms, as concerns mount that the broader market rally looks more like a bubble than the early innings of a major growth cycle. Any signs of weakness could trigger a dash for the exit in some of the largest tech stocks, potentially sparking a broader selloff.
“Broadcom and a lot of names like it have benefited…
