Broadcom Surges 4% on Nvidia Earnings Lift With AI Set to Hit 54% of Sales Ahead of Sept. 2 Report

Broadcom shares climbed 4.1% to $370.30 on Thursday, carried higher by a broad semiconductor rally triggered by Nvidia's blowout fiscal second-quarter results, which showed 106% year-over-year revenue growth to $96.2 billion and a third-quarter outlook of $108 billion. The Nvidia surge lifted Broadcom alongside Arm, Taiwan Semiconductor, AMD, Marvell Technology, and others, with the VanEck Semiconductor ETF gaining 3.5% on the session. Broadcom's own rally comes days before its September 2 earnings report, with analysts noting that AI-related revenue could reach 54% of total sales, a figure that underscores how central custom chip demand has become to the company's growth story.

Analysts have flagged that management's forward outlook will be the primary driver of the market's reaction to those results. Cathie Wood added to her Broadcom position on Wednesday ahead of the report. On the partnership front, Kyndryl expanded its alliance with Broadcom to broaden private cloud and AI services offerings.

Broadcom also drew attention from its cybersecurity division, where a senior engineer publicly urged enterprises to treat post-quantum cryptography as an immediate business priority rather than a future concern. A Zacks analysis argued that AMD holds more near-term upside than Broadcom despite strong AI momentum at both companies, citing AMD's expanding margins and technical setup.