Nvidia and Broadcom earnings: TD Cowen says earnings won’t settle big questions
Yahoo Finance ·
Nvidia and Broadcom earnings: TD Cowen says earnings won’t settle big questions Sam Boughedda Tue, August 18, 2026 at 11:03 AM EDT 1 min read NVDA AVGO Investing.com -- TD Cowen stated in a note on Tuesday that it sees upside to estimates across compute and networking semiconductors but is neutral heading into results from Nvidia (NASDAQ: NVDA) and Broadcom (NASDAQ: AVGO), arguing the issues that matter most to investors will not be resolved this quarter. "We see upside to numbers but are neutral into the print on NVIDIA and Broadcom given key debates are unlikely to be settled on earnings, while positive on Credo and Marvell," analyst Joshua Buchalter wrote. The firm said sentiment has flipped from July's pessimism, with capital expenditure and fundamentals pointing to a strong 2027 and oversupply concerns looking less salient against what it called relentless demand. Hyperscale and neocloud builders have reaffirmed or raised capex guidance, TD Cowen noted, while open models are now viewed as an incremental driver of compute demand rather than a headwind. On Nvidia, the brokerage expects a typical beat-and-raise with visibility extending through 2027, but said "earnings that should have been a positive catalyst for the stock haven't been in recent quarters, and we don't expect this dynamic to change." Buchalter added that investors are likely to focus on gross margin trajectory amid rising HBM prices, roadmap updates and new financing arrangements. For Broadcom, TD Cowen said debates over TPU share and non-TPU ASIC timelines are unlikely to be settled on the call. The firm also raised its 2030 datacenter total addressable market estimate above $1.6 trillion. "We remain cautious on non-TPU roadmaps (despite management's disclosed specific timelines) given past slips, and we think investors will be looking for explicit upside and timeline commentary to drive the stock," wrote Buchalter. Nvidia and Broadcom earnings: TD Cowen says earnings won't settle big questions JPMorgan outlines ten strategic themes that could shape the outlook for 2026 Wolfe Research outlines eight risks that could spark stock declines in 2026
AI 시장 분석
TD Cowen projects that NVDA and AVGO will beat earnings estimates, but notes that key debates are unlikely to be fully resolved this quarter. While hyperscaler capital expenditures (capex) support strong demand through 2027, concerns regarding margin trajectories and roadmaps persist. Amid expectations of solid earnings, investors must closely monitor gross margin pressure factors and detailed schedule risks.
상승 영향
- Semiconductors — Compute and networking semiconductor earnings for companies like NVDA and AVGO are projected to exceed expectations, supported by strong demand extending through 2027 and expanding hyperscaler capex.
하락 영향
- Semiconductors — Core debates, such as gross margin pressure from rising HBM prices and concerns over non-TPU roadmap delays, are unlikely to be fully resolved in this earnings report, potentially limiting upward stock momentum.
DYAX 전담 분석
Ahead of the earnings reports for NVDA and AVGO, possibilities of beating estimates in the compute and networking semiconductor sectors have been raised. However, a cautious outlook is emerging that strong earnings may not act as a catalyst for stock price gains as they did in recent quarters. In particular, concerns over gross margin trajectories due to rising HBM prices and delays in the non-TPU roadmap are acting as factors amplifying stock volatility.
The bullish scenario involves the resumption of an upward stock trend driven by robust capex extending through 2027 and the confirmation of sustained demand, while the bearish scenario entails profit-taking despite strong earnings due to margin pressure and roadmap uncertainty. Key monitoring indicators are gross margin trends and the 2030 data center Total Addressable Market (TAM) outlook.
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