TradingKey: AI-related stocks such as Dell, Super Micro Computer, and Palantir have seen post-earnings gains. Will Broadcom, which will report its results next Wednesday, replicate this performance?
On May 29, ET, Dell Technologies ( DELL) posted stellar earnings, sending its stock price up 33% in pre-market trading, surpassing the $400 mark and setting a new all-time high. This rally was primarily driven by positive earnings results; The Q1 FY2027 report released after yesterday’s close showed solid performance in both revenue and profits. Additionally, the company significantly raised its guidance, with next quarter’s revenue expected to grow more than 200% year over year to $33.5 billion.
Dell Technologies Stock Price Chart, Source: TradingView
Dell isn’t the first company to see its stock price rise after earnings; Several AI companies have seen similar trends this year, such as Palantir Technologies ( PLT) rose more than 19% after earnings, while Super Micro Computer ( SMCI) rose 26%, and Snowflake ( SNOW) soared approximately 36%, marking the largest single-day rally in the company’s history.
Post-earnings capital inflows into these three AI-related stocks have led investors to closely watch Broadcom, which is scheduled to report earnings next Wednesday (June 3), in hopes that it will replicate the explosive growth seen by Super Micro, Palantir and Snowflake. However, will Broadcom do the same?
While these three companies are AI-related, the drivers behind their stock price increases are not identical. Super Micro had previously attracted significant short-term interest due to accounting and delisting concerns; However, its earnings report resolved the crisis, triggering an epic short squeeze as bears rushed to cover their positions no matter the cost. Before their reports, Palantir and Snowflake faced skepticism about whether “AI software can be monetized or is just hype.” Both companies subsequently submitted major orders worth tens of billions; This gap between expectations and reality triggered a frenzied influx of capital, driving up stock prices.
Although Broadcom could see a significant gap, an “extreme rally” of 20% to 30% or more, similar to the companies mentioned above, is unlikely. Broadcom is currently the world’s sixth largest US-listed stock, with a market capitalization exceeding $2 trillion. For a giant like that to grow 25% in a single day would mean adding $500 billion in market value overnight (an extremely rare event in the history of the US market outside of Nvidia), unless a miracle occurs, such as revenues far exceeding Wall Street’s expectations of $22.04 billion.
