Weekly Equities Outlook: Broadcom, Oracle, Berkeley Group

Broadcom Q4 earnings preview

Broadcom will release earnings on Thursday December 11. Expectations are for year-over-year earnings growth driven by higher revenue. Has the chip maker continued to benefit from rapid AI infrastructure spending?

Wall Street is expecting the firm to report EPS of 1.87, up 31.7% in Q4, on revenue of $17.5 billion, up 24.5%. However, investment banks such as Citi and Goldman Sachs both expect Broadcom to exceed estimates and guidance.  The reason behind this could be Google's Gemini 3 success, which Broadcom helped to design nd produce the tensor processing units or TPUs for Alphabet, which were used to train Gemini instead of Nvidia’s Blackwell chips.

Guidance will be closely watched with forecasts of $18.4 billion supported by expected upside from Google's increased volume, whilst gross margins are expected to remain at 76%.

In Q3, the semiconductor manufacturer posted EPS of $1.69, ahead of the expected $1.66, on revenue of $15.95 billion, exceeding the $15.82 billion estimate.

The earnings come as concerns over the AI trade have eased, with tech stocks recovering from November lows.

How to trade AVGO earnings?

Broadcom’s share price has rallied across the year, forming a series of higher highs and higher lows. The price rose to a record high of 403 on November 28. The price eased back to support at 372, with the uptrend still very much intact.

Buyers supported by the RSI above 50 will look to rise above 403 to extend gains to a fresh record high towards 450 and 500.

Support is seen at 372; a break below here opens the door to the 50 SMA at 356. A break below 330 creates a lower low.

Oracle Q2 earnings preview

Orace is scheduled to release its Q2 fiscal results after the market close on December 10th. Investors and analysts will closely watch Oracle's mounting debt burden and an update on its $300 billion OpenAI partnership.

Oracle shares have risen by over 100% between April and September, though the stock has given back 30% of those gains after the company missed fiscal Q1 earnings and sales expectations. Even so, the share price is still up 30% YTD.

Oracle has been benefiting from rising demand for its cloud computing services. The company supplies database software and cloud infrastructure to businesses worldwide. However, the market is particularly concerned about the debt financing required for the company’s AI buildout. Much of the company's expansive backlog is tied to OpenAI, although investors are unsure if OpenAI will be able to follow through.

Expectations are for Oracle to report EPS of $1.64, up from $1.47 in Q2 last year. Sales are expected to jump 15% year over year to $16.19 billion.

Oracle surpassed earnings in four of the past eight quarters and missed sales estimates in six.

How to trade ORCL earnings?

After reaching a record high of 344 in September, Oracle’s share price eased lower to 18, the November low, before recovering higher to 220 at the time of writing, the September low. Buyers will look to rise above here to extend gains towards 258, the August high, and the 50 SMA.

Failure to rise above 220 could see the price retest the 185 low. A break below here creates a lower low.

Berkeley Group H1 results preview

Berkeley Group, the housebuilder, will report first-half results on Wednesday, December 10, and come as the share price trades at the same level it was in 2017, held back in recent years by higher mortgage rates, weakened consumer confidence, and input cost inflation.

The results come after the chancellor's budget. Rachel Reeves announced a mansion tax, and analysts are watching to see whether Berkeley Group believes it could influence demand for Berkeley’s homes. However, the mansion tax is for those above £2 million, while the average selling price last year for Berkeley was 593K.

UK house prices stagnated in November, both in annual and monthly terms, in the run-up to the government's budget.  While affordability constraints remain, the Bank of England is expected to cut interest rates again this month to 3.75%, which could help the market resume its move.

The markets will be watching several key performance indicators, including completions and prices, with last year's first-half figures at 2103 new homes and £600,000 for price. Meanwhile, the land pipeline comprised 13,500 plots at this stage last year.

 How to trade BKG.L results.

Berkeley Group's share price trades at a marginally lower level than at the start of the year. The price ran into resistance at 4225 and rebounded lower, below the 200 SMA, and is trading close to the 3500 level, which has offered a floor across the year.

Sellers will look to break below the 3500 level to spur deeper losses towards 3376, the 2023 low.

Resistance can be seen at 3835, the 200 SMA. A rise above here opens the door to 4100, the November 12 high, ahead of 4225.