TD Cowen stays neutral into Nvidia and Broadcom earnings, sees estimate upside in compute and networking

Two of the biggest chip stocks in technology, Nvidia and Broadcom, are set to report results amid a market that is still trying to pin down what the next leg of demand will look like. Ahead of those earnings, TD Cowen told investors that it sees upside to estimates across compute and networking semiconductors, but it is not taking a strong directional view heading into the reports.

The bank’s positioning reflects the idea that while fundamentals could improve in key areas, the earnings prints themselves may not fully settle broader questions investors are debating. In other words, the issue for the market is not only where estimates land, but how company-specific updates and guidance change the outlook going forward.

For semiconductors tied to compute, the focus typically centers on whether customer spending on data center and high-performance workloads remains resilient, and whether supply and product cycles support continued growth. TD Cowen’s note points to potential estimate upside in that category, suggesting the bank thinks baseline expectations could prove too conservative.

For networking semiconductors, investors are watching similar variables, including the pace of infrastructure build-outs that support data movement inside and between data centers. TD Cowen’s view that it sees upside to estimates in networking indicates it believes some part of that demand trajectory may be firmer than what current forecasts assume.

Even with that constructive framing on estimates, TD Cowen said it is neutral into the results, indicating that it expects a range of outcomes and that investors may be underestimating how much the companies’ commentary could swing sentiment. In practical terms, “neutral heading into earnings” usually implies the analyst is less convinced that the immediate reaction will be one-way, regardless of the longer-term story.

Broadcom, which supplies enterprise and cloud-focused infrastructure technology and is also closely linked to the broader semiconductor cycle through its networking exposure, is likely to draw attention to how it talks about near-term momentum and product demand. For Nvidia, the market tends to focus on data center performance and the durability of order and backlog indicates that can influence the next-quarter view.

What TD Cowen did not spell out in the Yahoo Finance report that carried the note is specific financial targets, quarter-by-quarter estimates, or detailed breakdowns of what it expects to change in revenue, gross margin, or cash flow. The post also does not identify whether the bank sees upside more strongly in one company than the other.

As the companies approach their earnings dates, the main watch item for investors is whether results and guidance reduce uncertainty rather than add to it. Given TD Cowen’s framing, the market may look for evidence that estimate upside is already “baked in,” or that management commentary opens the door to revisions after the print.