Can The AI Boom Keep Broadcom, Ciena And CrowdStrike Rallying After Earnings? | IBD

Hinzugefügt: 2026-05-31

[00:00:06]Hey everyone and welcome to our earnings cheat sheet for Friday, May 29th. It's Alexis Garcia and Ed Carson here and we'll be taking a look at some key upcoming earnings reports to help you prepare for the week ahead. And Ed, earnings season may be winding down, uh, but there's still some big names on the horizon. So, what do you have on tap for us today?

[00:00:30]Yeah, I'd like to take a look at AI chip maker Broadcom, fiber optic play Sienna, and cyber security giant Crowdstrike.

[00:00:38]All right. Well, let's start with Sienna Corporation, which is scheduled to post fiscal Q2 earnings on Thursday, June 4th. Earnings for that fiber optics play are projected to surge 248% to 146 per share. Revenue is expected to climb 34% to $1.5 billion. And here's why we're watching. Sienna, we'll be looking for comments on the company's nextgen AI uh data centers and optical roadmap. And Ed, I think investors will also be looking to see if all the growth in uh capex from these major hyperscalers uh will translate into backlog and higher revenue guidance from Sienna as well.

[00:01:21]>> Yeah. uh and this company has been doing just really well uh you know after years of sort of like having starts and stops like a lot of sectors there's just such overwhelming demand from AI that this traditional telecom gear uh supplier you know the optical gear has become such a boom uh real strong player in that so presumably the results will be strong it's always can they beat can they guide up yeah it's really that longer term what's that visibility you know if they have any commentary about the optical versus copper for connectors and all those things. But this has just been a real strong performer in terms of earnings and and and the stock reflects that.

[00:02:01]>> Yeah, we're on the daily chart here and we can see uh this one uh has been on a pretty nice run here since this breakout uh back toward uh the end of January. Uh we've had several tests of the 21day line. Uh but right now Ed, it looks like that 600 price level is maybe a potential area where uh Sienna stock uh is looking to uh pause around. Um so what are your thoughts ahead of earnings here? Uh it's extended from the moving averages. Uh but how would you approach this? Yeah, I mean this one uh obviously you know people who bought it well back why be back then have no problem waiting with sitting through this uh I think the question for add-on yeah the 600 level maybe a a drop to the 21day line I wouldn't do anything before earnings uh but that would be some place I suppose in theory I could you know if it doesn't do particularly well on earnings maybe the 500 level even or or the uh 50-day line that could be a place where it finds support over time. I mean, you know, and so it maybe is there as an entry there or just watch it build a new base, but we'll see. But those would be the potential ways you get into it. Uh otherwise otherwise, you know, it hasn't really paused that much at all. There's been little spots where you could have done it and it worked out. Uh but, you know, you'd have to be nimble. Uh and that's what happens in a strong rally.

[00:03:28]The market leaders really don't provide a whole lot of opportunities to get into uh into the stock. Uh, and I guess I'd also note that the relative strength line was strong. He was strong in that October to January or October to, you know, long period where the market wasn't really going anywhere. October really through March. You don't see that. I mean, there was, I mean, it didn't rally every day during that stretch, but that stock was still going up and the relative strength line very strong during that point. Uh, and so that's why even in corrections, you're looking for the strong RS lines. even if you say, you know what, I don't want to buy it because right now I'm a little nervous, but you still want to be looking for those stocks that are showing strong relative strength because that those can often be the real leaders in the next run as as Sienna has turned out to be.

[00:04:14]>> And I'm switching over to the weekly, but as you mentioned, those that did buy uh back on this breakout uh have plenty of cushion here. So, um, you know, any thoughts on, you know, potentially taking profits or wait and see, uh, are there any levels you would watch there?

[00:04:32]Uh, and yeah, we can see this 10 week line, uh, trying to catch up. Uh, but Sienna not giving it much of a chance lately.

[00:04:41]>> Yeah. So, it's touched there a couple of times and you can maybe the first couple times use that as a buying opportunity.

[00:04:46]I suppose you could do that again, but it basically did that recently and that was an opportunity when the market pulled back. That that was one of those blink and then you missed it kind of things. It didn't pretty quickly. It's pretty substantially above the 10-week line and obviously earnings are there now. The up down volume ratio is a very strong 1.7. I again, you know, you just look at those annual earnings. It was hard for this stock to to generate more than a couple of years of growth. And now now we're seeing it looks like again we see this with memory in a lot of places. There's this overwhelming demand that isn't just in the short run. And telecoms tended to be more hit or miss too. It was like, "Okay, we're going to buy stuff and then we're not going to."

[00:05:24]But there's just so much with the data centers. It's just it's just a transformation about what this company's about, you know, where you just never could trust it to last and whenever it got going, that's when it would roll over. That's not the case anymore. Uh not with not with growth like this that's coming in.

[00:05:41]>> All right, Ed. Well, let's move on and take a look at Crowd Strike, which is expected to report Q1 results on Wednesday, June 3rd. Earnings for the cyber security play are expected to jump 46% to 107 per share. Meanwhile, revenue is projected to increase 24% to 1.36 billion. And here's why we're watching Crowd Strike. We'll want to hear a commentary on Anthropics Mythos and Project Glass Swing along with any other um details about the AI impact on cyber security in general. And Ed, it seems like a lot of Crowdstrike's future growth depends on the success of uh this all-in-one cyber security platform. Uh the company has been known for its endpoint security, which is you know things on uh like laptops and other devices. Uh so I think another thing investors will be looking closely at are those um numbers to that new subscription model and seeing if people are actually signing up for that service.

[00:06:45]>> Yeah. and uh you know see if they can be an expanded you know all yeah allin-one that's a big expansion of market also means a lot more competitors too uh you know because instead of being specialized uh the real issue is you know the biggest issue is will AI work for crowd strike or will AI destroy crowdstrike and cyber security firms the the real vibe shift with with the cyber security in particular I mean software in general is rallying but the the vibe shift is that okay maybe AI can work for these software companies, especially the cyber security firms. And that's really the real thing. I mean, is this is this is this a weapon in your hand or a weapon to be used against you almost kind of thing? And it's just hard to get around that right now. There's that's there's positive vibes on that, but when I get that sense, obviously Crowdstrike is probably going to say positive things, but it's, you know, on that, but so it's not just the earnings. The earnings are going to be important. Yes, it's going to be on these other things, but it's like AI is just so important and and some of the things they've done with anthropic and this, you know, project mythos and all these kind of things. Uh, again, that's that's been very positive uh feedback that's been out there and just want to hear more about that to really get a sense that that cyber security is uh and this company in particular is going to be thriving in that environment.

[00:08:04]And Ed, in terms of the chart action, uh, Crowd Strike broke out of this really long consolidation recently, uh, on May 13th. Uh, it has jumped up quickly, 20%, it's extended from the moving averages. Uh, it seems like once it crossed that, uh, 200 day line, Ed, it really, uh, hasn't looked back, uh, since that point in time. So again, another one uh maybe too extended to buy ahead of earnings, but we'll see if it can maybe pause around uh this 675 level here. Uh what are your thoughts with crowd?

[00:08:44]>> Yeah, and you know, right there at that 200 day line or that a few days later when it popped out of that May 7th, that was the day that Fortnet came out with earnings and that was like the first big cyber security company. was like, "Oh, oh, it really is working here." Because before it's like, "Okay, a few are peing above the Tunday line, but it's like, ah, do you really trust it?" So, that was big. And that I think, yeah, that was those were the last times to really get into it. I don't know what you can do here. It's extended. Uh, it's extended from the buy point. Even when it was breaking out, it felt extended from all the moving averages. this one needs to pause, you know, like come back, you know, let the 21day line catch up, form a shelf, something, you know, but hey, those who bought it on these things, great. Uh, but yeah, I don't see any I don't see any near-term buying opportunity for this.

[00:09:31]>> And, uh, just switching over to the weekly, Ed, uh, you could see here how, uh, extended crowd strike is from the 10 and 40 week line. Uh, any final thoughts, uh, with the fundamental picture here, uh, before we move on?

[00:09:46]Yeah, I mean the relative strength line coming on that's really important because it had been lagging for quite a while going sideways. I'm a little bit more you know you know like forgiving of when a a sector is out of favor. So if it's out of favor and then it comes into favor well of course the RS line is going to be lagging and this one feels like it's a leader along with a couple other names in the group. So want to see that continue to do well. But yeah because this one had gone sideways and there's all sorts of things going on with Crowd Strike in particular over the past couple of years. So, it really hadn't made a lot of progress and is now maybe moving uh in a way that it hadn't.

[00:10:20]So, that that's going to be a that's a big deal. But uh again, up down volume ratio 1.7. Same as with Sienna. Just a lot of strength right now in those two names.

[00:10:33]>> All right. Well, let's move on to Broadcom, which is also due on Wednesday, June 3rd. The chipmaker is expected to see fiscal Q2 earnings up 51% to 239 per share. Uh meanwhile, revenue is expected to rise 47% to $22 billion. And here's why we're watching Broadcom. Uh we'll look for updates about new customers as well as production ramps. Broadcom has four big customers for its custom AI chips. It's Google, Meta, Anthropic, and Open AI. It also has some unnamed customers. is one who's rumored to be bite dance and is actively engaging uh with a few more potential customers. And Ed, I think with all of that, investors will want to see if Broadcom bumps up its fullear AI revenue forecast uh because the market's really looking for evidence that these hyperscaler data center buildouts are uh going to keep up their pace and with that keep up that demand for those chips.

[00:11:31]>> Yeah, I mean we talk because it is a chipmaker and that's what's really moving things. The ironic thing is that in the last few years it had diversified quite a bit into a lot of software and you know software just isn't growing as fast. I mean there just isn't and uh so I think that's one reason why the growth isn't like at 100% you know kind of thing because but the chip business is th is flying uh you know and so yeah just want to see if that growth can continue if you can see some ex accelerating growth in in this in these in these spaces and that's that's what people want to see but uh and and what it's commentary about AI and custom AI and and and as you were bringing up you know you know big customers maybe new customers out there. Uh those are all just going to be important for Broadcom and and related firms.

[00:12:20]>> And Ed, we see Broadcom uh broke out of this lopsided cup base on April 22nd.

[00:12:26]That was a 41461 buy point. But really uh we see this gap up here after it crossed the 50-day line uh on April 8th. Uh kind of the start of that run. It's hovering in uh this buy zone. and it hasn't really advanced all too much since this breakout ed. So potentially actionable here. Uh but what are your thoughts with Broadcom?

[00:12:51]>> Yeah, so if it stays here after earnings, I mean, yeah, it's actionable because it's still in the buy zone. I think I'd like to see it get above at least the very recent high or even get above the all-time highs and sort of treat this as a high handle or a shelf and just get above some of those areas because it's just sort of been stuck in there. I mean, you don't want to let this run away from you because it'll be getting extended for moving averages again. Uh, I wish it had been tighter, but at the same time, I think if you look on a weekly chart, it looks a little better and, you know, not, you know, sort of tight in there. And, uh, moving averages that are starting to catch up. Uh, when this stock first broke out, don't need to go back to it, but it was 15% above the 21-day line.

[00:13:32]Now, the 21-day line, now it's been touching the 21-day line. So, uh, the 50-day line was way below, you know, the highest thing and now it's much closer.

[00:13:42]Now, it's not like it's hasn't caught up, but at least it's not way off way off below. So, uh, that's been positive.

[00:13:49]So, I think on a weekly chart, it looks a little better in that regard. Um, you know, so, but you'd like to see it move.

[00:13:55]It hasn't taken off in the way that some other names have. Uh but uh this one definitely could be one that's actionable with a with a positive action on earnings.

[00:14:06]>> All right. So we'll be looking at that 442 or possibly 435 level there as an entry ed. Uh any other final thoughts with uh Broadcom fundamentals here. We can again see this uh yearly growth uh pretty solid uh in the low to mid60s here. uh sales also looking pretty strong for the next couple of years.

[00:14:30]>> Yeah. So re picking up on an annual basis this growth rate. So pretty strong uh pretty strong. Obviously it made some big moves. It's sort of gone sideways and we've also seen this with Nvidia.

[00:14:41]That doesn't mean it has to happen now.

[00:14:43]Um it doesn't have to happen at all but you know there's been some you know the earnings line has has continued to move up. Let's put it that way. The earnings line has continued to move very strongly over the last few years and stock has sort of moved sideways and so maybe maybe there's room for this one to run.

[00:14:58]So I definitely want to definitely want to be watching this name uh as on earnings more so than the others in terms of actional being actionable for sure.

[00:15:08]>> All right. Well, those were some of the big names on our radar, but uh there's always more. Uh let's take a look at Credto Technologies Ed earnings there on June 1st. Uh this one looks extended. Uh so what are your thoughts here and uh what will you be watching with credo earnings?

[00:15:28]>> Yeah, that one I mean it's this base is so deep that it's not going to show it, but this was a cup with handle breakout a few days ago, but boy, it's a very v-shaped handle. It's very volatile in some ways. I think the 9% or so ATR understates how much this one can move because it can really move over a few days, too. I mean, this one moved down from 210 to 150 and then right back up to to new highs. Technically, it's in buy range or very close to buy range, but who knows where this will go after earnings. I mean, that's the thing. This is Monday night. It could, you know, this is this is early in the week, so this one could go all over the place. I mean, you know, if this is up 25%, down 25%, you know, uh, but, you know, I think one thing is will they be talking more about they made a made an optical buy. They're more in the copper, you know, connectors as opposed to these optical things like Sienna and stuff.

[00:16:23]You know, how is the copper market going? How is their shift maybe toward optical? Those are some questions that'll matter not just for Credo, but for some other names. All right, how about we look at cloud computing play Viva Systems earnings there on June 3rd.

[00:16:37]Uh Ed, this has been in a downtrend uh since attempting this breakout back here last fall. Um but again, an important name in within that cloud computing sector. So what will you be watching here?

[00:16:50]>> Yeah, I mean to see if this can get off the mat and this one just hasn't. And there's been a lot of software makers have bounced back. This one really hasn't. It just hasn't. uh you know it's been a winner in the past but it's been a while like I think if you go to a monthly chart it's been a you know up until about 2019 2020 this was a big winner but since then the RS line has been in decline and you know the stock was nearing all-time highs but you can see the RS line was nowhere near highs and then it fell apart now partly that's because of the software concerns and AI maybe they'll say no no no AI is not a concern we're going going going uh but yeah this one needs a lot of repair work and this is also like even though the fundamentals have been fairly and also the growth rates are supposed to slow.

[00:17:33]So the fundamentals have been pretty strong over the years but supposed to slow here. So can they really revive uh you know going you know going forward again >> and we talked about crowd strike we also have PaloAlto Networks reporting on June 3rd. Uh this one also a recent breakout uh back here on May 13th. It's above a buy zone. Uh so again thoughts here with Palo Alto >> pretty much the same things with Crowd Strike is you know this one is extended needs to pause pull back for some something you know do something to give give a place to enter uh and I made that move with Fortnet you know gap and above things a few weeks ago and yeah so want to see about that is AI is it thriving with AI and and again the vibe shift is there uh can they can they keep that that that positive feeling And >> we also have uh Rubric uh another cyber security name uh with earnings on June 4th. Uh this one Ed trying to come off the lows here. Uh it's regained uh the 50 and uh recently the 200 day moving average. Uh so again, what are you looking at with Rubric uh ahead of earnings?

[00:18:44]>> You know, this one I think needs to set up a new base. You know, get a base over the 200 day line. I mean, I understand this one could work. I mean, okay, you buy it now and then it gaps up and gaps up and you're off to the races, but one, it it hasn't really for it's this is its last this uptrend is it, you know, and you know, we usually like to see an uptrend then a new base form ideally over the 200 day line. And also just look at this stock. I mean, it has had some wild action last earnings, well, a couple earnings reports ago, not the last one, but the couple ones that gapped up. Okay, here we go. All right, here we go. It's going to come back.

[00:19:16]Blah blah blah. And it rolled over very quickly. I understand that there's other things going on, but this one did that.

[00:19:22]In the prior time, it gapped down hard.

[00:19:24]Uh, you know, like again, it was looking like it was almost at highs uh setting up. So, uh, so it can it can look positive. This one's very volatile at times and it's not a leader. I think you want to see it make a move and then set up before you uh get too in too excited about this. Again, lot of growth, but it just hasn't acted well as a stock.

[00:19:49]All right, we have a number of discount retailers reporting next week as well.

[00:19:52]So, let's go through those. Starting with five below uh earnings there on June 3rd. Uh this one, Ed, uh looks like it's testing the 50-day line. Uh so, thoughts here.

[00:20:05]>> Yeah, so I mean it had made a big run and finally sort of failed. There's a number of things. I suppose if it gets above then this will have a base going into earnings. This was this is uh going to be six weeks into a base. So after this week, you know, it'll have a base.

[00:20:20]So a clear move over the 50-day 10-week line would also break a trend line it looks like or be now clearly. So there would be an opportunity maybe with earnings uh to buy there. So we'll have to see. Some discounters have done very well. Some have done terribly. So we'll see. We'll see on this one. Uh it's not clear from what others have done.

[00:20:40]>> All right. How about we take a look at some others? uh Dollar General uh earnings there on June 2nd. Uh this one not so good. It hit that high of 15823 back in February. It's been in a downtrend. Uh looks like it's trying to come off these lows. Uh jumping above the 21day line. Uh but what will you be looking at in terms of earnings here?

[00:21:03]>> Yeah, I mean it made, you know, it's it that bounced there because it's it's pure dollar dollar tree uh bounced off earnings, but you know, this one needs a lot of repair work. It needs to get I mean you need to get above the tunity line but even then it's like it just seems like you'd want to get it closer to highs and maybe form a handle. It just uh you know big big drop off in the RS line.

[00:21:26]>> Yeah. And we also have uh Ali's bargain outlets uh next week. Another one Ed that's been in a solid downtrend. So looks like five below maybe more of the leader in this area. But any uh thoughts or commentary you'll be paying attention to with these earnings?

[00:21:42]>> Yeah, I mean I just think how are they handling, you know, how are they handling uh higher costs, higher transportation costs, you know, how are their customers dealing with it? Are they getting customers to drop down from higher income levels? And so those are some of the things that you know be looking to see. But yeah, it's Ali's in particular a long that one's been struggling for quite a while. uh you know and so this one is one of the bigger lagards in the group now.

[00:22:07]>> All right, last but not least, let's take a look at Oracle. Uh earnings there not due until June 16th, but this will be our last episode for the cycle, Ed.

[00:22:16]So uh let's just take a look and see.

[00:22:20]Again, another important name within this AI uh data center universe. Uh but Oracle's been struggling uh but looks like it's inching closer to this 200 day line. So, what are you going to be looking at here? And what would you like to see set up technically for Oracle?

[00:22:38]>> Yeah, I mean this one it's, you know, if it were above the 200 day line, you could almost treat this what it was doing right now as an early entry, like a really aggressive entry because it's clearing the short-term level. Uh, you know, if you just treated a base within a base, but this is also, look, it needs to get over this 200 day line. Uh it's also if you go way back to a prior base that's the tinity line sort of lines up to where the buy point was way back then. So still plenty of overhead resistance above that but that would be a key level just getting above that that level as well. But you really want to see about things how are they dealing with things because they're spending they're leveraging so much more. I mean they're trying to compete with these hyperscalers who are throwing up massive cash. they're spending almost all their cash on capital spend but they can finance and they're not borrowing but Oracle's borrowing they're pretty reliant on open AI so they're much more vulnerable so whenever bad things happen and whenever people have a bad feeling about AI uh Oracle tends to tends to suffer uh very quickly because they don't have a whole lot to fall back on uh yeah you want to see this is more important this might be a signal for like oh maybe I'll buy Google or maybe I'll buy Amazon or maybe I'll buy a Neocloud like an iron or Nebius rather than Oracle. Uh because this one has not bounced back the way that a number of others have held up or bounced back. Uh but still a hugely important name and it's the the last all of these companies are sort of like the last big names that we'll get you know for another month and so this is you know it's sort of the last word and it will be important for uh AI AI you know build out.

[00:24:17]>> All right Ed well as always thank you so much for your insights today. We appreciate it.

[00:24:22]>> Thank you, Alexis.

[00:24:24]>> All right, well that wraps it up for this season of earnings cheat sheet. As always, if you want more market analysis, be sure to tune in to Stock Market today. Uh that goes live after the closing bell. Thanks so much for watching and we'll see you next earnings season.