📊 PRO: This Week in Visuals
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Today at a glance:
📈 Broadcom: AI Revenue Surge
🛒 Costco: Tariff Concerns Loom
🌊 Sea Limited: Shopee Momentum
📶 Marvell: High Expectations
🚚 JD.com: Strongest Growth in Years
🎯 Target: Tariff Pressures Ahead
🏈 Flutter: FanDuel Drives US Growth
🧑⚕️ Veeva: Raising the Bar
🌐 Samsara: Soaring Margins
🖥️ HPE: Cost-Cutting Begins
🌱 MongoDB: Weak Outlook
🛒 Best Buy: Tariff Headwinds
👟 On: Expanding Global Footprint
🔐 Okta: AI Optimism
🛠️ GitLab: New CRO
⚡️ Celsius: Bold Expansion Move
1. 📈 Broadcom: AI Revenue Surge
Broadcom’s Q1 (January quarter) revenue rose 25% Y/Y to $14.9 billion ($330 million beat), with adjusted EPS of $1.60 ($0.09 beat). AI-related revenue surged 77% to $4.1 billion. The company guided Q2 revenue to $14.9 billion ($0.3 billion beat), driven by AI XPUs and custom chips for hyperscalers, with four new customers in the pipeline. Despite recent stock volatility, Broadcom reaffirmed its leadership in AI infrastructure, lifting shares post-earnings.
CEO Hock Tan emphasized that AI spending remains strong, with major cloud providers racing to build 1 million AI chip clusters by 2027. While non-AI segments like industrial and wireless face headwinds, AI growth is offsetting those pressures. Broadcom’s software unit, bolstered by the VMware acquisition (completed in late November 2023), reached $6.7 billion in quarterly revenue, up 47% Y/Y. With AI demand exceeding prior forecasts, Broadcom remains well-positioned, reinforcing its place as a top AI semiconductor player alongside Nvidia.
2. 🛒 Costco: Tariff Concerns Loom
Costco's Q2 (February quarter) saw revenue rise 9% Y/Y to $63.7 billion ($640 million beat), with adjusted comparable sales up 9% and e-commerce surging 22%. US comps grew 9%, outpacing Walmart and Target, while membership fee income increased 7% to $1.2 billion. However, EPS of $4.02 ($0.09 miss) fell short, partly due to FX headwinds. Strong traffic and renewal rates (90.5% globally) continue to support Costco’s premium valuation, while management highlighted a steady consumer backdrop, with more spending shifting toward food at home.
Despite its resilience, tariff uncertainty looms, with CEO Ron Vachris warning that potential cost increases could affect pricing. Approximately a third of US sales stem from imports, but Costco's supplier relationships and membership-driven model provide a competitive advantage. Analysts are optimistic, noting market share gains and substantial cash reserves ($12 billion), which raises speculation about a special dividend. While shares fell after earnings, the long-term outlook remains positive, supported by expansion plans and ongoing digital momentum.