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The after-hours price surged nearly 13%, rekindling hopes for a rise in the AI Concept within the U.S. stock market.
① Broadcom released better-than-expected Earnings Reports on Thursday, with first-quarter revenue of 14.92 billion dollars, and revenue from AI chips surged 77% to 4.1 billion dollars; ② Broadcom is optimistic, forecasting second-quarter revenue of about 14.9 billion dollars, with AI chip revenue reaching 4.4 billion dollars; ③ Broadcom also revealed that it is collaborating with four major customers to develop custom chips, which will further enhance its profit prospects.
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Earnings Call Summary | Broadcom(AVGO.US) Q1 2025 Earnings Conference
The Nasdaq has fallen nearly 10% in two weeks, with chip stocks facing heavy short-selling.
In yesterday's Nasdaq crash, chip stocks led the decline, with the PHLX Semiconductor Index plummeting by 4.5%. Short sellers are aggressively shorting Technology stocks, pushing the shorting costs for the VanEck Semiconductor ETF to this year's highest point. The market is worried that Trump's trade disputes, stubborn inflation in the USA, and large-scale layoffs dominated by DOGE could trigger a recession or even stagflation in the USA. Additionally, the improvement of AI capabilities in China has sparked market concerns about the future demand for chips.
Options Market Statistics: Strong Demand for Custom AI Chips Drives Broadcom's Earnings Beat; Options Pop