Broadcom’s AI semiconductor revenue rose 221% to $16.7 billion.
Its targets keep getting bigger.
But the near-term outlook was mixed, supply still matters, and interest-rate expectations are moving in the wrong direction for stocks.
Broadcom’s AI Targets Keep Getting Bigger
Broadcom reported Q3 revenue of $29.6 billion and EPS of $3.32.
For Q4, it expects AI semiconductor revenue of $21.7 billion, up 236%. But its total revenue guidance of $34.8 billion came in below the $35.1 billion estimate.
That helps explain the subdued market reaction.
The longer-term targets are much larger:
- Roughly $58 billion of AI semiconductor revenue in FY26
- Roughly $115 billion in FY27
- Roughly $230 billion in FY28
- More than $30 of FY28 EPS
Broadcom said it has a “high degree of confidence” it can ship $350 billion of AI semiconductors over the next two years, even if the full 30 GW pipeline is never built.
The company says it has secured supply for 2027 and 2028. Current demand is already above its 2027 outlook.
Broadcom has started production shipments of Google’s next-generation TPU v8i. Anthropic is expected to deploy another 5 GW in 2027.
Cantor Fitzgerald raised its price target to $600, based on 17 times its CY28 EPS estimate of $36.
Demand is strong. The open question is how quickly Broadcom can turn it into reported revenue.
AI Infrastructure Is Expanding Across the Market
A market recap said Nvidia agreed to acquire Hugging Face for $12.93 billion.
Nvidia said Hugging Face would remain open to models and hardware across the ecosystem. Developers would not have to use Nvidia compute.
Figure committed $3.5 billion to deploy up to 100,000 Nvidia Vera Rubin GPUs for humanoid robotics and Helix AI.
Nebius expects at least 5 GW of contracted power by the end of 2026, with about 80% expected to support IT workloads.
The article behind that claim assumes 4 GW earning about $25 million in annual revenue per MW. That would produce $100 billion in ARR and, according to the article, could make Nebius a $1 trillion company.
Those are the article’s assumptions, not reported results.
Anthropic could file its prospectus as soon as next week, although the timing is uncertain. Investors expect a valuation of $2 trillion or more.
Its July revenue reached a $65 billion annualised pace, up from $47 billion in May but below the most bullish expectations of more than $80 billion.
OpenAI also started rolling out GPT-6 Astra and called it a “generational leap.” Greg Brockman ended the briefing by saying, “Welcome to the AGI era.”
Micron’s Memory Case Depends on Tight Supply
UBS projects Micron could reach nearly $379 billion of revenue and approximately $265.65 of EPS in fiscal 2028.
That case depends heavily on tight memory supply.
Micron says its 2026 HBM supply is fully committed. It expects demand to remain tight through 2027 and potentially beyond.
UBS forecasts that industry HBM prices could rise about 79% in 2027. Producing 100 bits of HBM can also require sacrificing approximately 300 bits of conventional DDR memory.
Strong AI demand and less available supply support higher prices.
But there is a serious counter-thesis.
The Wall Street Millennial speaker says CXMT held approximately 8% of the global DRAM market in 2025, while YMTC was estimated at 13% to 14% of global NAND.
The speaker expects expanding Chinese supply to create a historic memory glut within the next 1 to two years.
If that forecast is right, the shortage behind the Micron estimates could reverse.
AI Is Starting to Become Software Revenue
Snowflake reported 37% product revenue growth and said AI produced roughly half of its recent growth acceleration.
That is an early sign of AI becoming real software revenue.
The supplied ServiceNow thesis is that AI could increase spending on software platforms companies already use, instead of replacing them.
But ServiceNow still has a per-share capital-allocation question.
It has roughly $5.1 billion of unrecognized stock-based compensation that will affect future periods. That compares with about $4.2 billion left under its buyback authorization.
ServiceNow has generated large free cash flow and reduced its share count despite that compensation. The per-share result depends on whether those reductions continue as AI revenue grows.
Jobs, Services Prices, and Energy Support the Rate-Hike Case
The U.S. added 162,000 jobs in August. Unemployment held at 4.1%, and participation rose.
The ISM Services PMI reached 55.4. Its prices-paid index hit 72.6, a multi-year high.
Energy is adding more pressure. U.S. diesel refining margins reached a record $106 per barrel, while retail diesel hit $5.78 per gallon.
Strong jobs, high services prices, and expensive energy give the Fed more room to raise rates.
Fed Governor Christopher Waller supported holding rates at 3.50% to 3.75% if inflation kept moving toward the Fed’s 2% target. He also said an inflation reversal could make an increase appropriate.
The next tests are CPI on Sept. 10, PPI on Sept. 11, and the Fed meeting on Sept. 15 and 16.
Stocks fell Friday as expectations moved toward a possible September rate hike. The Dow lost about 0.5%, the S&P 500 about 0.4%, and the Nasdaq about 0.3%.
Political Pressure Conflicts With Rate Expectations
President Trump demanded rate cuts and threatened to stop trading with countries that have surpluses with the U.S. unless the Fed cuts. CNBC
Markets, meanwhile, were moving toward a greater chance of a hike.
The U.S. trade deficit widened from $71.2 billion to $88.6 billion in July, driven by capital-goods imports.
The Bank of Japan is reportedly leaning toward raising rates from 1.00% to 1.25% at its Sept. 18 meeting.
Tesla and Volkswagen Tell Two Different Auto Stories
Tesla started offering public Cybercab rides in limited areas of Austin.
The two-seater has no steering wheel or pedals. The U.S. auto safety agency said it was evaluating the effort.
Tesla registered 45 Cybercabs in Texas, bringing its state robotaxi fleet to 420 vehicles.
One early rider described the vehicle as comfortable, spacious, and smooth. That is one rider’s account.
A separate bullish author estimates a 1.5 to 2 year payback period and a useful life of 10 to 15 years. The same author predicts a Tesla and Waymo transportation duopoly and plans to invest in a personal Tesla Robotaxi fleet after receiving approval from Tesla and Elon Musk.
Those are forecasts, not operating results.
Volkswagen’s supervisory board approved another 50,000 job cuts as the company faces tariffs, overcapacity, and aggressive Chinese rivals.
Falling Sales, Rising Stocks, and New Products
Lululemon’s revenue fell 4% to $2.4 billion, while comparable sales declined 9%.
Robinhood rose 15% after a Morgan Stanley upgrade. Since July 1, Robinhood Chain has generated $34.6 billion in cumulative DEX volume.
$SPCX moved above $150 after one holder said the position had been called too early the previous week.
Apple is preparing for its Sept. 9 event, which Bloomberg described as the beginning of the company’s biggest new product push.
Saving More Is Not the Same as Looking Wealthy
Fidelity said the average 401(k) balance increased 10.5% from March through June, the biggest quarterly increase since 2020.
Including employer contributions, participants saved an average 14.4% of pay. That was just below Fidelity’s recommended 15%.
The supplied wealth-building approach is simple: keep expenses within income, track earnings and investments, own income-producing assets, take calculated risks, and give compounding time to work.
Visible spending is not the same as wealth.
A Speaker Alleges Trading and Access Conflicts
The Geopolitical Economy Report speaker alleged suspicious oil trades, congressional stock conflicts, and paid early access to President Trump’s Truth Social posts. Geopolitical Economy Report
The speaker cited a 2022 report that nearly 1/5 of Congress members traded stocks with possible conflicts of interest.
The speaker also described a program charging Wall Street firms $100,000 per month for early access to Truth Social posts as a textbook case of insider trading.
These are the speaker’s allegations and characterizations.
AI demand is spreading across chips, memory, infrastructure, software, robotics, and public markets.
Supply limits remain unresolved. So does the tougher rate backdrop.