Monday, March 4, 2024

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Broadcom Inc. (AVGO), TotalEnergies SE (TTE) and Lam Research Corp. (LRCX). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Broadcom’s shares have outperformed the Zacks Electronics - Semiconductors industry over the past year (+126.1% vs. +107.0%). The company is benefiting from the strong deployment of generative AI, which it expects to contribute more than 25% of semiconductor revenues in fiscal 2024.

VMware is expected to contribute $12 billion to revenues. Infrastructure software revenues are expected to be $20 billion while semiconductor solutions revenues are expected to increase in the mid to high-single-digit percentage range on a year-over-year basis in fiscal 2024.

Broadcom expects networking revenues to grow nearly 30% year over year in fiscal 2024, driven by accelerating deployment of networking connectivity and expansion of AI accelerators in hyperscalers. Wireless revenues are expected to remain stable on a year-over-year basis. However, server storage, broadband and industrial are expected to decline.

(You can read the full research report on Broadcom here >>>)

Shares of TotalEnergies have gained +5.5% over the past year against the Zacks Oil and Gas - Refining and Marketing industry’s gain of +7.9%. The company continues to benefit from startups, well-spread LNG assets and contribution from upstream assets located in the new hydrocarbon-producing regions.

Multi-energy assets acts as a tailwind for TotalEnergies. Acquisitions and divestitures allow the company to streamline its assets. It is steadily investing to expand its renewable operation and aims to achieve net-zero emissions by 2050.

The company’s production might be impacted by security-reasons in some regions. The company remains exposed to acquisition-related risks as these assets contribute a sizable volume to production. A natural decline in production and its withdrawal from Russia might affect profitability.

(You can read the full research report on TotalEnergies here >>>)

Lam Research’s shares have outperformed the Zacks Semiconductor Equipment - Wafer Fabrication industry over the past year (+104.7% vs. +72.3%). The company is benefiting from strength across 3D DRAM and advanced packaging technologies. Growing etch and deposition intensity owing to increasing technology inflections in 3D architectures, is a positive.

However, weakness in the systems business, primarily due to sluggish memory spending, is a major concern. Although sluggish wafer fabrication equipment spending remains a concern, improvement in the outlook for the same owing to modest memory recovery, is a positive.

For 2024, WFE spending is expected to be in the mid-high $80 billion range. NAND is expected to benefit from technology upgrades, while DRAM is likely to benefit from node conversions and capacity additions in HBM. Meanwhile, Lam Research's leading-edge investments are likely to benefit Foundry/Logic category.

(You can read the full research report on Lam Research here >>>)

Other noteworthy reports we are featuring today include Toyota Motor Corp. (TM), Dell Technologies Inc. (DELL) and Canadian Natural Resources Ltd. (CNQ).

Mark Vickery
Senior Editor

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>