Aug. 18 at 11:12 PM
TD Cowen sees upside to semiconductor estimates for computing and networking but remains Neutral on Nvidia and Broadcom ahead of earnings, arguing key investor questions are unlikely to be resolved this quarter. The firm is more positive on Credo and Marvell.
TD Cowen said sentiment has improved from July as stronger capex and fundamentals point to a solid 2027, while oversupply concerns are fading amid persistent AI demand. Major cloud and specialized cloud providers have maintained or raised capex forecasts, with open AI models now viewed as an additional demand driver.
For Nvidia, TD Cowen expects another earnings beat and stronger 2027 guidance, but believes results have failed to consistently drive the stock higher. Investors will focus on gross margins amid rising HBM memory costs, product-roadmap updates and new financing agreements.
For Broadcom, debates over TPU market share and non-TPU ASIC timelines are unlikely to be resolved in the earnings call.
$NVDA $AVGO $CRDO