Coverage ended 2 updates · Last at 9:53am ET

Stock Market Today: Nasdaq Composite Soars After Broadcom (AVGO) Earnings

By Eric Bleeker · Updated Dec 13, 9:53am ET · Published Dec 13, 9:24am ET

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Live Updates

Newest first

AI Infrastructure Stocks Carrying the Market

Eric Bleeker

Today is all about AI infrastructure stocks. That’s stocks that are involved in massive data center build-outs in areas like chip design, networking, and optics.

Some names to watch include:

  • Broadcom: Up 21.3%
  • Marvell: Up 9.3%
  • Applied Optoelectronics (Nasdaq: AAOI): Up 9.2%
  • Celestica (NYSE: CLS): Up 7%
  • Credo (Nasdaq: CRDO): Up 5.7%
  • Ciena (Nasdaq: CIEN): Up 5%
  • Taiwan Semiconductor (NYSE: TSM): Up 3.9%

Watch for 'Breadth' in the Stock Market

Eric Bleeker

A key theme to watch in the market this week is ‘breadth.’ The S&P 500 recently finished 8 straight days where a majority of stocks finished down.

In that period, the S&P 500 saw days the overall index was up, but it has largely been propped up by gains in the largest stocks such as the Magnificent 7. Interactive Brokers recently revealed that 70% of their trading volume comes from Magnificent 7 stocks, which shows how concentrated the market is getting in a select group of names.

The S&P 500 showing more breadth would be a welcome sign to all investors, as it shows more confidence in the general economy versus a select group of names.

Live coverage has ended. The full story is below.

Full Coverage

The story so far

As of 8:50 a.m. ET, Nasdaq Futures are pointing to a strong day. The big news was a raucous earnings call from Broadcom (Nasdaq: AVGO). We profiled the earnings call last night in a live blog, which you can read here if you want to discover more details.

However, the bottom line is that Broadcom forecasts AI spending from the largest companies at a level beyond what Wall Street was expecting. Here’s a look at major markets premarket trading this morning:

  • Nasdaq Future: Up 179 points (+.83%)
  • S&P 500 Futures: Up 21.50 (+.35%)
  • Dow Jones Industrials: Up 32.00 (+.08%)

Let’s dive deeper into the major storylines shaping today’s markets.

Broadcom Rockets AI Stocks Higher

Broadcom released earnings last night and sales and EPS last quarter largely met Wall Street expectations. However, on the company’s earnings call they disclosed their top customers have a ‘serviceable addressable market’ of $60 billion to $90 billion by 2027.

Considering Broadcom’s company-wide AI revenue was $12.2 billion in its just-completed Fiscal year, only three large customers have that potential was surprising to Wall Street. Shares are up 18% in premarket trading. 

Commentary from Wall Street has been very positive. Here’s a selection of price target adjustments:

  • Bank of America: Raised price target to $250 from $215. The researcher raised price targets for Fiscal 2025 and 2026 while praising Broadcom’s “surging AI opportunity.”
  • Deustsche Bank: Took their price target on Broadcom to $240, up from $190. Analyst Ross Seymore called the $60 billion to $90 billion an “impressive figure.”
  • JPMorgan: Raised Broadcom’s price target to $250 while increasing forward profit estimates.
  • KeyBanc: Maintained an overweight rating while raising Broadcom’s price target to $260.
  • TD Cowen: Praised Broadcom’s new ‘service addressable market’ figure while upping their price target to $240.

Marvell (Nasdaq: MRVL) is up 8% while NVIDIA (Nasdaq: NVDA) is up 1.6% premarket. Watch for AI infrastructure stocks across the board to rally as Broadcom’s commentary raises enthusiasm across the sector.

Contact [email protected] for any questions or corrections.

Eric Bleeker

Eric Bleeker has been investing for more than 20 years. He began his career working at Microsoft before joining Motley Fool, one of the largest publishers of financial research. In his 15 years at Motley Fool Eric served as the General Manager for Fool.com and led coverage in the Technology & Telecom sector. In addition, he was a featured columnist and has hosted dozens of investing seminars attended by more than a million total investors. Eric has more than 1,000 financial bylines to his name and has been featured in The Wall Street Journal, CNBC, Fox Business, and many other leading publications. He is currently focused on artificial intelligence investing and is a CFA Charterholoder.

All articles →