Earnings Edge for Wednesday: Setups for Broadcom, Veeva, AeroVironment, Wix, Abercrombie & Fitch, American Eagle Outfitters, Rigetti Computing, Okta, Bath & Body Works, and Many More

Relative winners and losers over the last quarter, followed by names of note, concluding with a spreadsheet containing setup tables for all of the day’s reporters.

Relative Winners and Losers

Names of Note

Broadcom (AVGO)

Bull Scenario

• Broadcom’s $73 billion AI infrastructure backlog and custom chip design wins with major hyperscalers position it as essential infrastructure for AI deployment. The VMware integration is delivering subscription revenue growth ahead of schedule, creating a dual-engine model where semiconductors and software provide diversification. At current levels down 23% from highs, the market is underpricing Broadcom’s structural role in AI networking and data center connectivity.

• The company’s 67% EBITDA margins and strong free cash flow generation demonstrate operational excellence, while silicon photonics leadership addresses power efficiency challenges that become critical as AI clusters scale. Analyst price targets near $450 suggest 40%+ upside as the market recognizes Broadcom’s defensive positioning in AI infrastructure spending.

• Management’s track record of successful M&A integration and the VMware Cloud Foundation becoming the enterprise private cloud standard create long-term visibility. The custom silicon business has high switching costs once chips enter production, providing annuity-like revenue streams that justify premium valuations.

Bear Scenario