Broadcom Redraws the AI Silicon Runway While Dell's 16% Sprint Pulls Wall Street Off the Mat

Wednesday’s rebound was driven less by the indices than by a sequence of AI-related datapoints. The Dow rose 0.56% and the Nasdaq 0.45% as the 10-year Treasury yield eased. July factory orders increased 0.9%, ahead of the 0.7% consensus, after contracting 0.3% in June. ADP reported 38,000 private-sector jobs added in August, below the 47,000 estimate and revised July total of 46,000. LSEG still showed a 69% probability of a September Fed hike. EUR/USD slipped to 1.1585, while WTI held at $91.30 and Brent at $95.42. Middle East tensions and crude prices continue to reinforce inflation risks. Dell Technologies (DELL) rose 15.81% to $492.20. Revenue increased 58% year over year to $47 billion, ahead of the $45 billion consensus, while EPS tripled to $7.04 versus $4.90 expected. Management now expects full-year AI-server revenue to triple rather than double and raised full-year group-revenue guidance to $192 billion from $165 billion. Traditional PC revenue grew 20% to $15 billion. Citi raised its target from $515 to $600, and JPMorgan from $565 to $635; both retained buy ratings. Broadcom (AVGO) initially declined after guiding to $34.8 billion in fourth-quarter revenue versus $35 billion expected. However, CEO Hock Tan raised FY26/27 AI-revenue expectations to roughly $115 billion from more than $100 billion and introduced FY27/28 guidance of $230 billion. Anthropic is expected to become Broadcom’s largest customer through a 5-gigawatt TPU rollout, with another 10 gigawatts visible through 2028. OpenAI has a 5-gigawatt deployment, while Meta also contributes. Tan said Google’s TPU performs as well as or better than Nvidia Vera Rubin for inference. Quarterly revenue rose 86% to $29.6 billion, and EPS reached $3.32 versus $3.23 expected. Snowflake (SNOW) raised FY27 product-revenue guidance to $6.1 billion from $5.8 billion. Quarterly revenue was $1.55 billion versus $1.48 billion expected, with adjusted EPS of $0.62 against $0.45. MongoDB (MDB) reflects the same AI-driven data-consumption trend. Uber (UBER) rose 1.61% to $76.45 after CEO Dara Khosrowshahi cut roughly 3,300 jobs, or 10% of headcount. Palo Alto Networks (PANW) fell 9.28% to $328.48 despite FY EPS guidance of $4.16-$4.19, as gross margin declined to 74.8% from 75.8%. CFO Dipak Golechha cited higher cloud costs; the company also acquired Console to develop AI-agent capabilities. GitLab (GTLB) rose 9.98%, while Marvell (MRVL) and Arista Networks (ANET) fell. Friday’s payrolls report remains decisive for rate expectations and AI-risk appetite.