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Broadcom's AI Chip Orders Soar as Job Growth Slows, Boosting Tech Sector
6 Sep
Summary
- Weak August jobs data fuels expectations of Fed rate cuts
- Broadcom reports blowout quarter, $10B in AI chip orders
- Apple could gain billions from Google Search antitrust ruling
As of September 6th, 2025, the stock market has experienced significant volatility in the first few days of the historically tough month of September. Investors have been closely watching the Federal Reserve's next interest rate decision, with the weaker-than-expected August jobs report fueling expectations of a 25-basis-point rate cut later this month, and potentially two more similar moves before the end of the year.
The tech sector has been a particular focus, with several key developments. Broadcom, a leading custom chipmaker, reported a blowout quarter on September 1st, with the company's CEO revealing $10 billion in new orders for its AI-related semiconductors, potentially from a major new customer like OpenAI. Broadcom's strong performance and upbeat guidance have boosted the stock, which has gained over 12% so far this week.
Meanwhile, Apple investors received positive news earlier this week when a federal judge ruled that Alphabet can continue making payments to preload Google Search onto Apple's devices. This favorable antitrust ruling could unlock billions in additional revenue for Apple, as the tech giant could now consider similar deals with other large language model providers, further bolstering its high-margin Services business.
Despite the market swings, Jim Cramer of the CNBC Investing Club remains bullish on Home Depot, believing that lower borrowing costs will act as a catalyst for the home improvement retailer's shares as the housing sector recovers. Cramer also reiterated his long-held "own, don't trade" thesis on Apple stock.
