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Business Insider
21 hours ago
- Business
- Business Insider
AVGO Earnings: Broadcom's Financial Results Squeak by Wall Street Estimates
Chipmaker Broadcom (AVGO) has reported Fiscal second-quarter financial results that narrowly beat Wall Street's forecasts. Confident Investing Starts Here: The Silicon Valley-based company announced earnings per share (EPS) of $1.58, which was ahead of the $1.56 expected among analysts. Revenue of $15 billion edged the $14.99 billion consensus expectation of analysts. Sales were up 20% year-over-year. In addition to the solid print, Broadcom's management team offered robust forward guidance, saying they now expect about $15.80 billion in Fiscal third-quarter revenue, versus $15.70 billion that was expected on the Street. Broadcom's income statement. Source: Main Street Data AI Impacts Broadcom said it had $4.40 billion in AI revenue during the latest quarter. Looking ahead, Broadcom said that it expects $5.10 billion in AI chip sales during the current quarter, adding that 'hyperscale partners continue to invest.' Hyperscalers refers to companies that build large cloud systems such as Amazon (AMZN) and Microsoft (MSFT). Sales to hyperscalers are reported in Broadcom's semiconductor solutions business unit, which had $8.40 billion in revenue during the quarter, a 17% increase from last year, and above the $8.34 billion that analysts anticipated. The software business, which includes VMware, grew 25% year-over-year to $6.60 billion in sales during the quarter. AVGO stock has risen 13% this year. Is AVGO Stock a Buy? average AVGO price target of $256.04 implies 1.50% downside risk from current levels. These ratings are likely to change after the company's financial results.
Business Insider
a day ago
- Business
- Business Insider
LULU Earnings: Lululemon Stock Collapses 20% as Full-Year Guidance Slashed
Lululemon's (LULU) stock is down 20% after the athletic apparel maker cut is full-year earnings guidance due to a 'dynamic macroenvironment.' Confident Investing Starts Here: The Vancouver, Canada-based company reported first-quarter financial results that narrowly topped Wall Street estimates. Earnings per share (EPS) of $2.60 was ahead of the $2.58 expected among analysts. Revenue of $2.37 billion narrowly beat the consensus estimate of $2.36 billion. Lululemon's gross margin was 58.3% in Q1, ahead of the 57.7% that analysts had expected. Unfortunately, the decent print has been completely overshadowed by Lululemon's guidance cut. Management lowered their full-year earnings outlook, saying they now expect full-year earnings of $14.58 to $14.78. Previously, the company had forecast full-year earnings of $14.95 to $15.15. Analysts were looking for earnings of $14.89 for all of 2025. Lululemon's net income. Source: Main Street Data Manufacturing Overseas Lululemon said that it is navigating a tricky environment due to uncertainty surrounding U.S. President Donald Trump's tariff regime. Lululemon is particularly vulnerable to import tariffs as much of its clothing and footwear is manufactured in foreign markets. In 2024, 40% of Lululemon's products were manufactured in Vietnam, 17% in Cambodia, 11% in Sri Lanka, 11% in Indonesia, and 7% in Bangladesh, according to the company. Lululemon does not own or operate any manufacturing facilities and relies on suppliers to produce its products, including its popular yoga pants. LULU stock has declined 14% this year. Is LULU Stock a Buy? The stock of Lululemon Athletica has a consensus Moderate Buy rating among 27 Wall Street analysts. That rating is based on 16 Buy, nine Hold, and two Sell recommendations issued in the last three months. The average LULU price target of $345.58 implies 4.47% upside from current levels. These ratings are likely to change after the company's financial results.
Business Insider
26-05-2025
- Business
- Business Insider
Nvidia Pivots to Cheaper and Simpler Blackwell AI Chips for China
American semiconductor giant Nvidia (NVDA) is reportedly designing cheaper and simpler versions of its Blackwell artificial intelligence (AI) chips for export to China, to circumvent the new H20 chip export restrictions. The news was first reported by Reuters, citing sources familiar with the matter. Confident Investing Starts Here: Interestingly, the chipmaker is expected to begin mass production of these cheaper chips in June. The proposed chip will have weaker specifications compared to the current H20 models and will be produced using simple manufacturing techniques. Nvidia has said that the new chip restrictions will result in a $5.5 billion inventory write-off and the loss of nearly $15 billion in potential sales. Here's How Nvidia Will Skirt Chip Export Curbs The new GPUs (Graphic Processing Units) will be part of Nvidia's latest Blackwell family of processors, priced between $6,500 and $8,000 per unit, much lower than the $10,000 to $12,000 price tag of the advanced H20 GPUs. Moreover, the chip will use traditional GDDR7 memory to circumvent restrictions on exporting chips with high bandwidth memory (HBM), which is used in more advanced models. Additionally, the chip will be based on Nvidia's older RTX Pro 6000D processor, a server-class graphics processor. Finally, Nvidia will not use Taiwan Semiconductor Manufacturing's (TSM) CoWoS (Chip-on-Wafer-on-Substrate) packaging technology for these chips. Nvidia is exploring different strategies to continue exporting chips to China, which remains its second-largest market. This is the third time the chip giant is changing chip specifications to comply with the U.S.' chip export restrictions. These export curbs have caused a sharp decline in Nvidia's sales in China, down to 13% in Fiscal 2024. CEO Jensen Huang recently stated that the company is steadily losing market share in China to domestic competitors, especially Huawei, with its share falling to 50% from 95% before the export restrictions first took effect in 2022. Huang expects China's chip market to grow into a massive $50 billion sales market in the coming years and is determined to recapture a larger share. According to Main Street Data chart, China has remained Nvidia's second-largest revenue market after the U.S. Is NVDA a Buy Before Earnings? Ahead of Nvidia's Q1FY26 results, Wall Street remains highly bullish about Nvidia's long-term stock trajectory. On TipRanks, NVDA stock commands a Strong Buy consensus rating based on 34 Buys, five Holds, and one Sell rating. Also, the average Nvidia price target of $164.51 implies 25.3% upside potential from current levels. Year-to-date, NVDA stock has lost 2.2%.
Business Insider
14-05-2025
- Business
- Business Insider
OKLO Earnings: Oklo Reports Mixed Results and Announces Chief Technology Officer
Oklo's (OKLO) stock is down 4% after the developer of nuclear reactors reported quarterly financial results that disappointed investors. Protect Your Portfolio Against Market Uncertainty The Silicon Valley-based company, which is not yet profitable, reported a loss per share of -$0.07, which was a little better than a loss of -$0.08 expected among analysts. However, Oklo did not generate any revenue during this year's first quarter. Management said they expect to report their first revenues in early-to-mid 2026. Despite not having any sales, Oklo's cash burn remains on track and inline with management's previous forecasts. The company ended the year's first quarter with $261 million of cash on hand in marketable securities. Oklo's balance sheet. Source: Main Street Data New CTO Operational highlights in the quarter included completing a site drilling campaign at Idaho National Laboratory for Oklo's first planned Aurora powerhouse nuclear facility. The company is aiming to begin plant operations there in late 2027. Along with its latest financial results, Oklo announced the appointment of Pat Schweiger as its Chief Technology Officer (CTO). Schweiger has over 40 years of experience in the energy sector and is expected to bring 'deep, hands-on experience' to Oklo, said the company. OKLO stock has risen 50% this year. Is OKLO Stock a Buy? The stock of Oklo has a consensus Moderate Buy rating among six Wall Street analysts. That rating is based on four Buy and two Hold recommendations issued in the past three months. The average OKLO price target of $47 implies 46.74% upside from current levels. These ratings are likely to change after the company's financial results.
Yahoo
07-05-2025
- Business
- Yahoo
McDonald's (MCD) Doubles Down on Value as Consumers Cut Spending
McDonald's (MCD) Q1 earnings results suggest consumers are laying off Big Macs amid economic uncertainty. The world's most recognizable fast-food chain, with over 43,000 locations in more than 100 countries, reported a 3% drop in both revenue and operating income. McDonald's remains a rather consumer-friendly stock that stays buoyant in troubled times, and so the food giant's stock sell-off didn't last long. Protect Your Portfolio Against Market Uncertainty To be fair, the fast food giant missed revenue only narrowly ($5.96 billion versus $6.09 billion expected). It was most surprising that its U.S. same-store sales fell 3.6% during the first quarter, marking the worst performance since the pandemic. Of course, McDonald's is no stranger to economic challenges, and recent initiatives make me bullish on the stock regardless of what the economy has in store in the short term. The stock is down only 1% since McDonald's published its quarterly results. McDonald's (MCD) price history over the past 5 days Q1 Headwinds Reveal Broader Economic Concerns What's most interesting about McDonald's most recent result is what it implies about the overall economy. Low-income consumers are the first to pull back in trying times. It appears the 'other domino' has fallen. McDonald's also saw its middle-income consumers pull back in the first quarter, implying that economic pressure has broadened beyond the most disadvantaged. Main Street Data shows MCD's revenues split by segment Granted, this is a sector-wide challenge, although McDonald's is particularly vulnerable as its customer base skews more heavily toward budget-conscious diners. While higher-income diners maintained traffic, they did not make up enough of McDonald's customer mix to balance any losses from other segments. Global comparable sales decreased 1%. So, it's not just the U.S. that is dealing with hardships. Europe, for instance, is amid an inflationary cycle. Interestingly, McDonald's digital ordering channels were more stable than its in-restaurant numbers. Mobile app orders declined by only 0.8% year-over-year. The company launched its mobile app in 2015, and it remains a popular food app today. Strategic Recovery Initiatives Set the Stage for MCD McDonald's is always full of ideas and has a plan to deal with tough economic realities. If it handled COVID with flying colors, then a quarter of slowing sales shouldn't be too problematic. Its promotions continue to be popular, with the recent Minecraft Movie promotion proving to be particularly successful, driving foot traffic in April according to data from
