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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 (NASDAQ:AVGO).
What To Know: Nvidia’s dominance in AI-driven technology and its pivotal role within the S&P 500’s performance make its results a market-moving event, with implications for key players within 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 robust earnings beat from Nvidia could reinforce investor confidence in AI growth prospects, lifting sentiment around Broadcom as a beneficiary of the identical 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.
By now you are likely interested by how one can participate out there for Broadcom – be it to buy shares, and even try and bet against the corporate.
Buying shares is usually done through a brokerage account. Yow will discover a listing of possible trading platforms here. Many will can help you buy ‘fractional shares,’ which means that you can own portions of stock without buying a complete share. For instance, some stock, like Berkshire Hathaway, can cost 1000’s of dollars to own only one share. Nonetheless, in the event you only want to speculate a fraction of that, brokerages will can help you achieve this.
When you’re seeking to bet against an organization, the method is more complex. You will need access to an options trading platform, or a broker who will can help you ‘go short’ a share of stock by lending you the shares to sell. The strategy of shorting a stock could be found at this resource. Otherwise, in case your broker means that you can trade options, you possibly can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it means that you can profit off of the share price decline.