Weekly Equities Outlook: Broadcom, Palo Alto Networks, Dell

Broadcom earnings – AI demand and 2027 guidance in focus

Broadcom will report fiscal Q3 2026 results after the market close on September 2.

Expectations are for EPS of $3.23 and revenue of $29.24 billion, representing around 84% year-on-year revenue growth.

The key number will be AI semiconductor revenue. In Q2, AI semiconductor revenue reached $10.8 billion, up 143% year-on-year, already putting the business ahead of the previous trajectory. Management has guided to around $16 billion in Q3, which would represent growth of roughly 200%.

But, as with Nvidia, simply beating the quarter may not be enough. Forward guidance is likely to determine the share-price reaction.

Investors will want to see management raise its fiscal 2027 AI semiconductor revenue target towards or above $100 billion. This is particularly important after Broadcom left its target unchanged last quarter. Despite beating earnings and revenue expectations, the shares fell around 12%.

Customer concentration is another risk. Google's decision to expand its relationship with Marvell raised questions over whether Broadcom could lose some of its AI business. Broadcom shares fell 5% when the news broke, although the deal could also represent Google adding another supplier rather than replacing Broadcom.

How to trade AVGO earnings

Broadcom remains below its falling trend line after forming a lower high, although the 200 EMA around $366 continues to provide longer-term support.

A break below the 200 EMA and last week's low around $350 would create a lower low and weaken the technical outlook, opening the way towards $300.

On the upside, buyers need to reclaim the 50 EMA around $387 and then break the falling trend line around $411. Above here, $430, the August high, comes into focus. A break above $430 would create a higher high and change the current structure.

Palo Alto Networks' earnings – 2027 growth is the real test

Palo Alto Networks will report fiscal Q4 results on September 1.

Revenue is expected at around $3.34-$3.35 billion, up roughly 32% year-on-year, with EPS expected between $0.96 and $0.98.

The numbers come with the shares already up around 112% this year and trading close to their 52-week high of $396. That makes the valuation and expectations a key part of the earnings setup.

The previous quarter was already strong. Revenue increased 31% to $3 billion, Next-Generation Security ARR rose 60% to $8.1 billion and RPO increased 36% to $18.4 billion.

The question now is whether management can provide enough evidence of continued growth into 2027 to justify the current valuation.

AI-driven security demand will be closely watched, particularly after CrowdStrike's recent results supported the view that AI is creating more cybersecurity demand rather than reducing it.

However, expectations are already high. A strong quarter could still disappoint if the outlook doesn't improve enough.

How to trade PANW earnings

Palo Alto trades within a rising channel after recovering from the $328 low and 50 EMA.

Buyers will look towards $396 and fresh record highs if momentum continues.

On the downside, support is around $336, where the 50 EMA and rising trend line converge. A break below this area would expose the 100 EMA around $300. A break below the 200 EMA would turn the broader technical picture more bearish.

Dell earnings – AI backlog and margins in focus

Dell will report fiscal Q2 earnings on September 1 after the market close.

Expectations are for revenue of $45.2 billion, up more than 50% year-on-year, with adjusted EPS of $4.91.

The bar is particularly high. Dell shares have risen around 235% this year, meaning another earnings beat alone may not be enough to push the stock higher.

AI server demand will be the main focus. Dell is targeting around $60 billion of AI-optimised server revenue for 2027, up roughly 144% year-on-year.

In Q1, AI server revenue reached $16.1 billion, while AI orders hit $24.4 billion. The key question is whether that level of demand can continue or whether Q1 represented an unusually strong quarter.

The AI backlog could be more important than headline revenue. Management previously said demand was exceeding supply, with memory the main constraint. Any evidence that the backlog is slowing or flattening could be a problem for the shares.

Margins are another major issue. Infrastructure Solutions Group revenue jumped 181% to $29 billion in Q1, but investors will want to see how much profit Dell is actually generating from that growth.

How to trade Dell earnings

Dell is trading within a rising wedge, with the shares falling from the $514 record high before recovering.

The stock remains above its 50 and 100 EMAs, although momentum has started to weaken.

On the downside, a break below the rising trend line and 50 EMA around $420 would increase the risk of a deeper correction towards $370 and the July low.

On the upside, buyers need to reclaim around $475 before targeting rising trend-line resistance around $520. A break above $520 would invalidate the rising-wedge setup and strengthen the bullish outlook.