Jim Cramer Says “Someone Must Know Something” About Broadcom Inc. (NASDAQ:AVGO)’s Post-Earnings Share Dip
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Jim Cramer Says “Someone Must Know Something” About Broadcom Inc. (NASDAQ:AVGO)’s Post-Earnings Share Dip Ramish Cheema Fri, September 4, 2026 at 6:51 PM EDT 3 min read AVGO SNOW Broadcom Inc. (NASDAQ: AVGO ) dipped on September 3rd, the day after the firm reported its fiscal third quarter earnings report. The results saw the firm post $29.6 billion in revenue and $3.32 in earnings per share to beat analyst estimates on both counts. More importantly, Broadcom Inc. (NASDAQ:AVGO)'s semiconductor revenue jumped by 221% annually to sit at $16.7 billion. Cramer, who regularly praised CEO Hock Tan, discussed the earnings in a set of tweets alongside Snowflake Inc. (NYSE:SNOW)'s results: "Broadcom is a "conference call" stock, always has been. Have to hear what Hock has to say. "Hock giving you some nice raises for next year and the year after. That's what we have been looking for. Maybe i am too hopeful... Small position for the trust... "Snowflake a thing of beauty. AVGO an overtime save... "So Snowflake remains the best way for the uncertain to get compute but Broadcom tells a story of an explosion of business coming. Snowflake will have a huge move.... Broadcom? More nuanced... "Volume expanding all morning on Broadcom dramatically lower than last night's after hours trading. Be careful: someone must know something" As Broadcom Inc. (NASDAQ:AVGO) is one of the few firms capable of designing custom AI chips, its narrative also focuses on these products. The quarter also saw the firm hike its AI semiconductor revenue guidance to $115 billion for fiscal year 2027 and $230 billion for fiscal year 2028, with its Ethernet products and OpenAI shipments also playing a role. Broadcom Inc. (NASDAQ:AVGO) has also partnered up with most big tech firms to develop their AI accelerators, which, when coupled with the Ethernet business, means that the firm is a key part of the AI infrastructure ecosystem. Yet, this role comes with high expectations. Broadcom Inc. (NASDAQ:AVGO)'s fourth quarter revenue guidance of $34.8 billion missed consensus analyst estimates of $35.03 to generate worries about growth peaking. Similarly, AI semiconductor revenue guide for the fourth quarter pencils in a 30% sequential growth, which marks a slowdown over Q3's 54%. Not to mention, Broadcom Inc. (NASDAQ:AVGO) is also experiencing margin compression due to its VMware acquisition. Unlike Broadcom Inc. (NASDAQ:AVGO), Snowflake Inc. (NYSE:SNOW)'s shares soared by a strong 21% the day after the firm reported its Q2FY27 earnings. As is the case with all SaaS firms, the narrative for the company also surrounds its AI initiatives and whether they can deliver sustainable growth. On this front, the latest quarterly earnings saw Snowflake Inc. (NYSE:SNOW) report that significant portions of its accounts were using the Cortex AI platform. Cortex AI, made of the CoCo AI coding development agent and CoWork, a conversational AI workplace, appeared to hint at AI monetization. According to Snowflake Inc. (NYSE:SNOW), CoCo added more than 2,000 clients in Q2 and 60% of its accounts were using it. As for CoWork, the firm shared that 40% of the accounts were relying on the workplace platform. Yet, while Snowflake Inc. (NYSE:SNOW) might have monetized AI, the results are not making it to the bottom line. The firm reported a $192 million Q2 net loss, which was worse than peers such as Confluent. R&D expenses for Q2 marked a 15% annual growth. Not to mention, the firm's 15% non-GAAP operating margin is significantly below peers such as MongoDB's 24%. Looking at hedge fund sentiment for the two, it's clear that Broadcom Inc. (NASDAQ:AVGO), perhaps due to AI chip tailwinds, is the winner, as 170 funds covered by Insider Monkey had held a stake in the firm. On the other hand, 103 had held a stake in SNOW. Yet, the software exposure lends the latter a richer forward P/E multiple of 161 compared to Broadcom Inc. (NASDAQ:AVGO)'s 19.76. Yet, the higher multiple comes with a higher short interest as a percentage of float, with 5.6% of the shares short compared to AVGO's 1%. READ NEXT: Jim Cramer Draws the Line on NVIDIA in China: Why National Security Comes First and Jim Cramer Defends His Dell Stance as Investors Complain About Missing Out .
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