Prediction: Broadcom's June 3 Earnings Report Will Matter More Than Any "Magnificent Seven" Stock This Quarter

The "Magnificent Seven" -- Nvidia (NASDAQ: NVDA) , Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) , Apple , Microsoft , Amazon (NASDAQ: AMZN) , Tesla , and Meta Platforms -- collectively make up roughly 35% of the S&P 500 (SNPINDEX: ^GSPC) . These companies can certainly move markets with their quarterly earnings reports. But as investors saw from the most valuable member of the group, Nvidia, Wall Street's response to earnings can be relatively calm .

Nvidia delivered better-than-expected top- and bottom-line growth, announced a new $80 billion stock repurchase program, and a 2,400% increase in the quarterly dividend, and yet the stock barely budged -- down less than 2% the day after the report.

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Broadcom (NASDAQ: AVGO) , which isn't technically in the Magnificent Seven despite being worth more than Tesla and Meta, will report its second-quarter fiscal 2026 earnings on June 3. Here's why its report matters more than any of the other Magnificent Seven companies.

A staggering 92% of Nvidia's revenue from its most recent quarter came from data centers -- driven by artificial intelligence (AI) demand for compute. Similarly, Broadcom is rapidly growing its AI semiconductor business, but it is also an AI networking powerhouse -- guiding for 40% of total AI revenue in its upcoming quarter to come from networking -- not chips.

While Nvidia is the leader in graphics processing units (GPUs), Broadcom specializes in designing AI accelerators, called XPUs. These chips are built for specific use cases, enabling cost savings and efficiency improvements at scale.

Broadcom partners with Alphabet to design Google's Tensor Processing Units (TPUs). Google recently announced two new TPUs, the 8t for training and the 8i for inference. And on Broadcom's March earnings call, CEO Hock Tan discussed in detail the need for separate custom chips for AI inference and training, and forecasted that XPUs will ultimately overtake the GPU design in data centers.

On Amazon and Alphabet's latest earnings calls, both companies discussed their booming chip businesses, with Alphabet saying it may begin selling TPUs to select third parties and Amazon stating that if its chip business were a standalone entity, and it sold chips to third parties, it would have $50 billion in annual run rate revenue.