HAPPY THURSDAY TO THE STREET
Bad news for businesses who replaced half their employees with AI: ChatGPT, Grok, and Claude all went down at the same time today.
For a merciful few hours, millions of managers had to write their own emails and think their own thoughts. The productivity data should be fascinating.
🟩 | US stocks jumped today as Treasury yields slip further and Fed optimism grows.
📈 | One Notable Gainer: Snowflake (SNOW) popped nearly 20% after beating Q2 estimates and raising full-year product revenue guidance.
📉 | One Notable Decliner: Ultragenyx Pharmaceutical (RARE) plunged more than 40% after its Angelman syndrome drug missed its primary endpoint in a Phase 3 trial.
— Brooks & The Street Sheet Team
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
Market Movers
TESLA, TYSON FOODS, ROBINHOOD
📈 | Tesla (TSLA) climbed ahead of its Cybercab robotaxi launch event in Austin, scheduled for today after the close.
📉 | Tyson Foods (TSN) tumbled after slashing full-year guidance on beef pressures.
📈 | Robinhood (HOOD) jumped after Deutsche Bank named it a beneficiary of prediction market growth.
📉 | Victoria’s Secret (VSCO) sank after missing Q2 revenue estimates and guiding current-quarter operating income below views.
📈 | Dell Technologies (DELL) rose a second day on its earnings beat and raised fiscal 2027 forecast.
Tomorrow's Trade Idea, Today
AVGO BIG OR GO HOME
Stock Spotlight
Stock: Broadcom (AVGO)
Firm: Macquarie Equity Research
Current Price: $357
Price Target: $490
Implied Upside: 37%
Looking for more upside? Street Sheet Research members get 1 stock picks from the Top 10% of analysts with 100%+ implied upside each month. Subscribe today for 75% off your first year.
Fear, Priced In
Wall Street spent months worried that Google (GOOGL) would build its own chips, and cut Broadcom loose in response.
Macquarie thinks the worst case scenario is already on the tape… while the best one is still very much on the table.
Beyond The TPU
Analyst Arthur Lai upgraded the semiconductor stock to Outperform, arguing Google insourcing risk has played out and got priced in after the July correction.
Broadcom has designed custom Tensor Processing Units for Google for years, and the shelf life of that arrangement became the bear case once Google started shopping at Marvell Technology (MRVL) and exploring in-house silicon.
Lai sees plenty of potential catalysts remaining: a better-than-expected AI capex plan, a new customer win on AI accelerators, and share gains in AI ASIC projects.
A Crowded Bull Pen
Lai is hardly alone. Of the 51 shops covering Broadcom, 47 rate it a Buy or Strong Buy. Yet the stock is deep in the red over the past three months and slipped again despite a strong fiscal third quarter and an upbeat forecast.
The Street is bullish. The tape is not. Soon enough, one of them will be proven wrong. Macquarie knows which horse it’s betting on.
Do you own any shares of Broadcom (AVGO)?
OVERHEARD ON THE STREET
💾 Nvidia (NVDA) is buying Hugging Face for $13B, but will keep the platform open source.
🏦 Fed governor Christopher Waller said a hot August inflation print could push him toward supporting a rate hike.
🤖 OpenAI began rolling out GPT-6 Astra, its first model to hit the company’s Critical internal cybersecurity threshold.
📺 Fox News (FOXA) surprisingly parted ways with its anchor Maria Bartiromo after more than a decade.
🎮 Microsoft (MSFT) will cap Xbox cloud gaming hours for Game Pass subscribers in November as costs climb.
WEDNESDAY’S POLL RESULTS
Do you own any shares of Dell Technologies (DELL)?
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
🐂 Yup, I’m holding — “Having sold Enterprise tech solutions for about 10 years I know how integrated Dell is in the industry. Dell was notoriously difficult to work with but that's because they knew Dell's quality. It was an easy buy for me during the AI build out because of their server and datacenter business. Laptops, to me, were just a bonus. I do think that we will see a change in the client hw category though once AI gets baked out more. Early innings.”
👀 No, but I’m interested — “They are one of the few companies that can supply a complete datacenter hardware.”
