As NVIDIA Corp prepares to release its highly anticipated earnings report Wednesday evening, investors are watching closely for the potential ripple effects on the broader market—and particularly on peer stocks like Broadcom Inc AVGO.
What To Know: Nvidia's dominance in AI-driven technology and its pivotal role in the S&P 500's performance make its results a market-moving event, with implications for key players in the semiconductor industry.
Broadcom, like Nvidia, has leveraged the surging demand for AI infrastructure. It supplies high-performance networking chips and custom silicon that power data centers—critical components for Nvidia’s AI-focused operations.
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A strong earnings beat from Nvidia could reinforce investor confidence in AI growth prospects, lifting sentiment around Broadcom as a beneficiary of the same demand drivers. Conversely, a disappointing Nvidia report could signal a slowdown in AI investments, weighing on Broadcom's outlook.
Historically, Broadcom's stock has moved in tandem with Nvidia’s during major market reactions. Nvidia’s implied one-day move of 12.5% adds volatility to the semiconductor sector, underscoring the high stakes.
How To Buy AVGO Stock
By now you're likely curious about how to participate in the market for Broadcom – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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