The Tension Before Broadcom Earnings
Tomorrow evening after U.S. market close, Broadcom reports Q2 results. The company is one of the biggest winners of the AI explosion — in Q1, AI chip revenue grew 106% to $8.4 billion. Now analysts expect $10.7 billion AI revenue for Q2 with 140% growth. That's record-breaking.
The Second Event: Eurozone Inflation at 10:00
But that's not the full story. Tomorrow morning at 10:00 AM, eurozone inflation data drops. Prices are rising because of higher energy costs — and that could force the ECB to raise rates in June. This is the counter-scenario to a tech rally.
Two Clear Scenarios for Tomorrow
Scenario A — Broadcom delivers: AI revenue comes as expected or higher. Tech stocks (NVDA, AAPL, MSFT) explode. Chip stocks rally broadly. AI supercycle continues.
Scenario B — Inflation surprise: Eurozone inflation beats expectations. ECB becomes hawkish on rate hikes. Bank stocks (Deutsche Bank, BNP Paribas) surge. Bonds fall.
Why This Matters to You
If you own tech stocks or AI ETFs: Tomorrow could be a turning point. Being in Broadcom earnings means betting on the chip story. If you have banking positions: Higher inflation could flip the ECB decision and bring rate hike tailwinds.
Prepare Now
Tomorrow has two events: Inflation at 10:00 AM (European time) and Broadcom earnings at 22:30 (U.S. time). Both could trigger major moves. Watch your positions or use the volatility for new trades.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results.