Monday, March 17, 2025

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), JPMorgan Chase & Co. (JPM) and Qualcomm Inc. (QCOM). 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 >>>

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You can read today's AWS here >>> Pre-Markets Turn Green for St Patrick's Day

Today's Featured Research Reports

Broadcom’s shares have outperformed the Zacks Electronics - Semiconductors industry over the past year (+58.8% vs. +17%). The company is benefiting from strong demand for its networking products and custom AI accelerators (XPUs) as witnessed in first-quarter fiscal 2025. Strong demand for Broadcom’s application-specific integrated chips (ASICs), designed to support AI and machine learning, aids top-line growth.

Broadcom expects second-quarter fiscal 2025 AI revenues to jump 44% year over year to $4.4 billion. The acquisition of VMware has benefited Infrastructure software solutions. As of fiscal first quarter, roughly 70% of Broadcom’s largest 10,000 customers have adopted VMware Cloud Foundation.

Broadcom’s expanding AI portfolio, along with a rich partner base, reflects solid top-line growth potential. However, gross margin in fiscal second quarter is expected to contract sequentially on unfavorable revenue and product mix. High debt level is a headwind.

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

Shares of JPMorgan Chase have gained +23.5% over the past year against the Zacks Financial - Investment Bank industry’s gain of +25.4%. The company’s Strategic buyouts, branch openings and decent loan demand will aid the company. With interest rates likely to remain high for longer, its net interest income (NII) will get support.

The Zacks analyst expects NII (managed) to show a CAGR of 3.4% by 2027. Yet, the volatile nature of the capital markets business and high mortgage rates will hurt fee income growth. Our estimate for non-interest income indicates an 11.6% fall in 2025. As it invests heavily in technology and marketing, expenses are expected to remain elevated.

Our estimates for non-interest expenses reflect a CAGR of 2.5% by 2025. Weak asset quality is worrisome. However, a resurgence in deal-making activities and a solid pipeline will drive the investment banking (IB) business. We expect IB fees to grow at a CAGR of 7.6% by 2027.

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

Qualcomm's have underperformed the Zacks Electronics - Semiconductors industry over the past year (-4.4% vs. +17%). The company is also facing challenges from low-cost chip manufacturers like MediaTek and Rockchip. Moreover, the majority of its customers include Chinese manufacturers, which further clouds the revenue-generating potential owing to strained bilateral trade relationships with the United States.

Also, Apple’s move towards designing its chip in-house will likely have a negative impact on Qualcomm’s profit. Nevertheless, Qualcomm is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor firm for the intelligent edge.

With the accelerated rollout of 5G technology, it is benefiting from investments toward building a licensing program in mobile. The acquisition of Veoneer, Inc. has significantly strengthened QCOM’s position in the emerging market of driver-assistance technology.

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

Other noteworthy reports we are featuring today include ONEOK, Inc. (OKE), Robinhood Markets, Inc. (HOOD) and Omnicom Group Inc. (OMC).

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>>>