Prediction: Broadcom's June 3 Earnings Report Will Matter More Than Any "Magnificent Seven" Stock This Quarter

The "Magnificent Seven" -- Nvidia (NASDAQ: NVDA), Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), Apple, Microsoft, Amazon (NASDAQ: AMZN), Tesla, and Meta Platforms -- collectively marque up astir 35% of the S&P 500 (SNPINDEX: ^GSPC). These companies tin surely determination markets with their quarterly net reports. But arsenic investors saw from the astir invaluable subordinate of the group, Nvidia, Wall Street's effect to net tin beryllium comparatively calm.

Nvidia delivered better-than-expected top- and bottom-line growth, announced a caller $80 cardinal banal repurchase program, and a 2,400% summation successful the quarterly dividend, and yet the banal hardly budged -- down little than 2% the time aft the report.

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Broadcom (NASDAQ: AVGO), which isn't technically successful the Magnificent Seven contempt being worthy much than Tesla and Meta, volition study its second-quarter fiscal 2026 net connected June 3. Here's wherefore its study matters much than immoderate of the different Magnificent Seven companies.

Broadcom is connected the cutting borderline of AI concern

A staggering 92% of Nvidia's gross from its astir caller 4th came from information centers -- driven by artificial quality (AI) request for compute. Similarly, Broadcom is rapidly increasing its AI semiconductor business, but it is besides an AI networking powerhouse -- guiding for 40% of full AI gross successful its upcoming 4th to travel from networking -- not chips.

While Nvidia is the person successful graphics processing units (GPUs), Broadcom specializes successful designing AI accelerators, called XPUs. These chips are built for circumstantial usage cases, enabling outgo savings and ratio improvements astatine scale.

Broadcom partners with Alphabet to plan Google's Tensor Processing Units (TPUs). Google precocious announced 2 caller TPUs, the 8t for grooming and the 8i for inference. And connected Broadcom's March net call, CEO Hock Tan discussed successful item the request for abstracted customized chips for AI inference and training, and forecasted that XPUs volition yet overtake the GPU plan successful information centers.

On Amazon and Alphabet's latest net calls, some companies discussed their booming spot businesses, with Alphabet saying it whitethorn statesman selling TPUs to prime 3rd parties and Amazon stating that if its spot concern were a standalone entity, and it sold chips to 3rd parties, it would person $50 cardinal successful yearly tally complaint revenue.