Bloomberg Stock Movers
2026-09-03 · Hosted by — · Bloomberg / iHeartMedia
Executive Summary
Broadcom shares swung sharply in pre-market trading, ultimately settling down about 3%, after fourth-quarter sales guidance of $35 billion came in below estimates. Longer-term guidance was stronger, with the company projecting results doubling each fiscal year over the next two years and earnings of $30 a share by fiscal 2028. Broadcom also flagged that Anthropic and OpenAI are set to surpass Google as its biggest customers, though both companies' pending IPOs introduce uncertainty about their ability to fund those commitments.
Key Stories & Changes
1. Broadcom Falls on Light Near-Term Guide, Strong Long-Term Outlook
Shares down about 3% in pre-market after a volatile after-hours session (initially fell sharply, then reversed higher, then settled lower)
Fourth-quarter sales guidance of $35 billion came in below the average Street estimate
Company projects results doubling each fiscal year over the next two years (effectively quadrupling), with earnings of $30 a share projected for fiscal 2028
Disclosed that Anthropic and OpenAI are expected to surpass Google as Broadcom's biggest customers
Both Anthropic and OpenAI are in the process of going public, which would provide capital infusions potentially needed to fund their spending commitments — introducing execution risk to Broadcom's own multi-year estimates
2. HPE Falls on Margin and Networking Softness
Shares down about 4% in pre-market, failing to match investor enthusiasm carried over from Dell's strong earnings the prior day
Beat top and bottom-line estimates for the fiscal third quarter and raised revenue projections
Gross margins expected to moderate toward historical levels, signaling early margin contraction
Data center networking revenue fell 6%, driven by supply constraints in that segment, weighing on the overall networking segment's results
3. Snowflake Surges 24% on Strong Guidance and AI Adoption
Ticker SNOW up 24% in pre-market trading
Projecting fiscal-year revenue of about $6 billion, above the average Street estimate
Coco, the company's AI coding assistant, has been a key driver of adoption; added 2,000 new customer accounts, increasing total customers by over 25%
JPMorgan analysts noted the third consecutive quarter of product revenue acceleration reflects strength in both AI and core (non-AI) parts of the business
Shares have more than doubled off their yearly lows
4. Five Below Raises Full-Year Guidance
Ticker FIVE; discount retailer lifted its full-year net sales outlook, now seeing sales about 4% higher than previous guidance
Comes after a more cautious outlook issued in June, when the company cited concerns about persistent inflation
CEO attributed the raised forecast to the company's ability to quickly capitalize on online sales trends
AVGO: Broadcom — -3% pre-market — Light Q4 guide, but strong FY27-28 outlook; Anthropic/OpenAI to become top customers
HPE: Hewlett Packard Enterprise — -4% pre-market — Beat-and-raise but margin moderation and 6% networking revenue decline
SNOW: Snowflake — +24% pre-market — Fiscal-year revenue guide of ~$6B, above estimates; strong AI (Coco) adoption
FIVE: Five Below — Higher — Raised full-year net sales guidance ~4% above prior outlook
Trends Identified
1. AI Customer Concentration Risk Is Emerging as a New Scrutiny Point
Broadcom's disclosure that Anthropic and OpenAI will surpass Google as its top customers highlights a shift toward AI-lab-driven demand, but both companies' reliance on pending IPO proceeds to fund spending introduces a new layer of execution risk that wasn't previously as prominent in AI infrastructure earnings commentary.
2. Hardware Earnings Reactions Are Diverging Sharply Based on Guidance Nuance, Not Just Beats
Broadcom and HPE both technically beat estimates yet fell in pre-market trading, while Snowflake's guidance beat drove a 24% surge — reinforcing that markets are parsing granular guidance details (near-term softness vs. multi-year trajectory) rather than rewarding simple beat/miss outcomes.
3. AI Product Integration Is Driving Software Outperformance
Snowflake's acceleration, tied explicitly to its Coco AI coding assistant and broader AI feature integration, suggests AI monetization is beginning to show up meaningfully in software company results, not just infrastructure/chip names. ---
Sentiment Analysis
Overall Market Sentiment: Mixed
Hardware/chip earnings reactions were negative on near-term guidance softness, while software/AI-integrated platforms and retail outperformed, producing a mixed pre-market tone.
Risk Factors Highlighted
AI lab customer concentration and funding risk: Broadcom's reliance on Anthropic and OpenAI as top customers is tied to their pending IPOs, which may be needed to fund their spending commitments.
HPE margin contraction: Gross margins moderating toward historical levels signals early pressure on profitability even amid revenue growth.
Data center networking supply constraints: HPE's 6% networking revenue decline, driven by supply constraints, indicates ongoing hardware supply chain bottlenecks.
Broadcom near-term guidance miss: Despite a strong multi-year outlook, the light fourth-quarter sales guide introduces near-term uncertainty ("a few bumps in the road" per the hosts).
This episode was covered in today's [The Market Signal — 2026-09-03](https://marketsignal.beehiiv.com/p/the-market-signal-2026-09-03), a cross-source synthesis of multiple podcast reports.