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Broadcom’s Surging AI Revenue
And, RH survives "worst housing market."
Today is Friday, December 13, 2024.
The Early Bird Index today is 83.90
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Broadcom’s Surging AI Revenue
It wasn’t perfect, but Broadcom’s (Nasdaq: AVGO) financial earnings release on Thursday boosted the stock by 14.08% in after-hours trading.
Financials: Broadcom reported earnings of $1.42 per share in the past quarter, which was better than expected. Revenue reached $14.054 billion, which was expected.
Powering the Story: Revenue for Broadcom’s semiconductor business reached a record $30.1 billion in 2024, which the company attributed to its growing AI business. AI revenue skyrocketed by 220%.
Stock Price: Broadcom has performed better than most semiconductor stocks in 2024. It was up 66%.
Early Bird’s Nest Egg Gains: Broadcom's AI revenue is soaring at a remarkable rate because the company is making custom AI chips for three top cloud companies.
The company's growth in AI revenue includes sales of ethernet networking parts.
Strong demand from hyperscalers, which is a type of cloud provider, is also driving AI revenue.
Final Thoughts: Broadcom is ending 2024 strong. Can this continue in 2025?
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Notables
Notable Earnings Today: N/A.
Notable IPOs Today: Aldel Financial II Inc. Class A Ordinary Shares (Nasdaq: ALDF), NETCLASS TECHNOLOGY INC Class A Ordinary Shares (Nasdaq: NTCL), Anteris Technologies Global Corp. Common Stock (Nasdaq: AVR).
Notable Equity Crowdfunding Campaigns Ending Today: Groovy Chicken and Waffles (Honeycomb), Bocadillo Market (Honeycomb), World Illustrated (Wefunder), Azolla (Wefunder), CliqRex (Netcapital), AllSides (Wefunder), Video Notebook (Wefunder), Pastazerts (Honeycomb).
Notable Economic Events Today: Import Price Index (8:30 a.m. ET), Export Price Index (8:30 a.m. ET).
RH Survives "Worst Housing Market"
Despite posting disappointing financial earnings results, the home furnishings company RH (NYSE: RH) jumped 17.64% in after-hours trading on Thursday.
Financials: RH reported earnings of $2.48 per share in the past quarter, which was lower than expected. Revenue reached $811.73 million, which was expected.
Powering the Story: Demand in the quarter grew by 13% despite operating in what the company called “the worst housing market in 30 years.”
Also: RH said increased tariffs in 2025 won’t impact the business because it moved sourcing away from China.
Final Thoughts: If the housing market improves, the company could continue to grow.
Chainlink Jumps Due to Trump Crypto Venture
The cryptocurrency Chainlink jumped about 18% on Thursday to reach its highest price since 2021.
Details: World Liberty Financial, the new crypto venture tied to President Trump, accumulated a lot of Chainlink tokens this week. This drove the price up.
Final Thoughts: Chainlink’s price has doubled in the last 30 days.
Trends to Watch
Retail Win: Costco beats on earnings as e-commerce sales jump (CNBC)
$5K Dreams: Ethereum’s Ether Headed to $5K as Activity, Institutional Demand Grows (CoinDesk)
IPO Success: ServiceTitan’s IPO is a big winner that could inspire fintechs (TechCrunch)
Still Growing: ‘Magnificent Seven’ hits another milestone. Here’s why it could continue to dominate the market in 2025. (MarketWatch)
Streaming Turns Into Cable: YouTube TV Raises Price 14%, to $83 per Month, Citing ‘Rising Cost of Content’ (Variety)
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