Overview
TD Cowen issued a research note on Tuesday indicating a neutral stance on the upcoming earnings releases of Nvidia (NASDAQ: NVDA) and Broadcom (NASDAQ: AVGO). The note emphasizes that the most critical investor debates are unlikely to be resolved in this quarter’s results.
Market Outlook
The brokerage sees upside to consensus estimates across both compute and networking semiconductor segments, citing a shift in sentiment from July’s pessimism. It points to strong capital‑expenditure guidance from hyperscale and neocloud builders for 2027 and a diminishing oversupply narrative, describing demand as “relentless.” Open‑model architectures are now viewed as an incremental driver of compute demand rather than a headwind.
Nvidia Specifics
TD Cowen expects Nvidia to deliver a typical “beat‑and‑raise” outcome with visibility extending through 2027, but notes that earnings have not acted as a positive catalyst in recent quarters and this dynamic is not expected to change. Analyst Joshua Buchalter highlights that investors will focus on the gross‑margin trajectory, rising high‑bandwidth memory (HBM) prices, forthcoming roadmap updates, and any new financing arrangements.
Broadcom Specifics
For Broadcom, the note states that debates over the share of tensor processing units (TPU) and the timelines for non‑TPU ASICs are unlikely to be settled during the earnings call. TD Cowen raised its 2030 datacenter total addressable market (TAM) estimate to above $1.6 trillion. The firm remains cautious on non‑TPU roadmaps despite management’s disclosed timelines, indicating that explicit upside and timeline commentary will be required to move the stock.
Other Companies
The note also expresses a positive outlook on Credo and Marvell, though no detailed commentary is provided.