Broadcom's stock price surged over 24%! Apple is said to be cooperating with Broadcom to develop AI chips.
1min read U.S. stocks ended mixed overnight, with the Dow falling 0.20% for a seventh consecutive trading day, the Nasdaq rising 0.12%, and the S&P 500 closing flat. This week, the Dow fell 1.82%, the S&P 500 dropped 0.64%, and the Nasdaq rose 0.34%. The market's focus is on the Fed meeting next week.
After reporting earnings, Broadcom's stock surged more than 24%, its market value topping $1 trillion for the first time. Broadcom's AI revenue grew 220% to $12.2 billion this year, and it expects a 65% YoY increase in AI product revenue in the first quarter of fiscal 2025.
Marvell Technologies rose nearly 11%, setting a new record high, as its larger rival Broadcom released an optimistic revenue forecast.
TSMC rose 5%, as insiders revealed that TSMC is working to integrate CoWoS and SiPh, aiming to launch CPO in 2026. Besides, Apple and Broadcom are cooperating to develop AI chips, and TSMC's advanced process will again receive a large order. Media reports that Apple is developing a server chip designed specifically for AI, and is cooperating with Broadcom to develop the chip's networking technology. The new chip's internal code name is Baltra, and it is expected to be mass-produced in 2026.
Tesla rose more than 4%, setting a new record high. It was reported that Trump's transition team suggested revoking the existing general command requiring automakers to report accidents related to autonomous driving systems.
The Nasdaq China Dragon Index closed down 1.13%, up 2.07% this week. Most popular Chinese stocks fell, with PDD, Li Auto, Bilibili, JD down more than 2%, Alibaba, NIO down more than 1%. On the upside, TIGR rose more than 9%, FUTU rose more than 1%.
The Fed will hold its last monetary policy meeting of the year on December 17-18. The market pricing of swaps suggests that traders believe the probability of the Fed cutting interest rates by 25 basis points at its December meeting is as high as 95%.
The minutes of the November monetary policy meeting of the Federal Open Market Committee (FOMC) showed that Fed officials believed that if the economy performed as expected, gradual rate cuts and a shift to a more neutral policy stance would be appropriate.
Economists surveyed expect the Fed to cut interest rates for a third consecutive month this month and lower its forecast for the number of rate cuts next year. The market expects the Fed chairman Powell and his colleagues to cut interest rates by 25 basis points next week, which would mean a cumulative 1 percentage point cut since September if the forecast is accurate.
