Major moves in semi stocks... And what’s next for oil 9/2/26

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**Frank Holland** (1:01)
Live from the NASDAQ Market Site in the heart of Times Square in New York City, this is Fast Money and here's what's on tap tonight. Broadcom dropping after its latest earnings report, the semi-giant's guidance, disappointing investors. We're down into the conference call. We're going to bring you all the details and relief on rates, long-term yields pulling back from recent highs and helping stocks rebound, but can the momentum continue after a rough run? We'll debate that, plus crude oil rises even as a deal is struck with Venezuela. Alphabet gets a stamp of approval from Berkshire Hathaway and Bankstox. They catch a bid, but some of the biggest names in the group, they set out the rally. What's behind that divergence? We're going to get some answers. I am Frank Holland in for Melissa Lee coming to you live from Studio B at the NASDAQ. On the desk tonight, we have Steve Grasso, Karen Finerman, Dan Nathan and Gaia Dami.
But we start with an earnings alert on Broadcom. Shares the chip maker dropping despite an earnings and a revenue beat. Disappointing revenue guidance. It seems to be what's weighing on the stock pulling back about 3.5%.
The call kicked off at the top of the hour. Let's get right to our Christina Pratsanvelis with all the details.

**Christina Praytsanvelis** (2:07)
Just started a minute ago, but Broadcom, like you said, just beat on almost every single line this quarter and yet the stock is still falling. Revenue up 86% from a year ago. Earnings beat, AI semiconductor revenue, which was a key metric, came in at $16.7 billion, topping the company's own forecast. Then you're wondering, Frank, you brought it up, why are shares down? The outlook does play a big role. Fourth quarter revenue guidance came in a little under what Wall Street wanted. Same for Q4 operating margins, and on the number of investors cared about the most, the new fiscal 2027 AI forecast, nothing new was actually in the release for that number. So we continue to assume, north of $100 billion, which is what Hawk 10 has provided, when the street wants to hear at least 115 billion. That matters because of what's hanging on the stock, competition. Google is bringing in cheaper second sources for its custom chips with MediaTek, Marvell and AMD all moving in on business Broadcom used to have. I know that there's different tiers, but nonetheless, it's competition. There's still strength here though, management says AI chip revenue jumps to $21.7 billion next quarter and CEO Hocktan called demand very strong, which is why there is a lot riding on this earnings call that just started two minutes ago. The detail on 2027 and on how Broadcom holds its lead, especially with Google that matters more than the numbers that are already out.

**Frank Holland** (3:26)
So a lot of questions about the TPU business, that seems to be another thing weighing on the stock. Morgan Stanley out with the notes and they expect Broadcom to keep about 80 percent of that business. So is the idea here that that's what's keeping the guidance from coming out being increased? Is there a lack of clarity, I would say, on the TPUs?

**Christina Praytsanvelis** (3:42)
Morgan Stanley may be bullish, but then others are more concerned, saying that Media Tech is scooping in on the lower tier level of the TPU business, or I should say Google's custom chip business. I think what we're missing is what portion of Marvell is actually taking from that business, and they won't release those details until their October Analyst Day, where Marvell says, okay, we're building all the networking and all the other chips, not the TPU business, which pertains to Broadcom. That's something we still don't have an answer, so perhaps on the call tonight, Broadcom will say, don't worry, we still have our business, our relationship with Google. Marvell means nothing.