When the sixth most valuable U.S. company posts 221% sales growth and neither the stock, nor the broader market, gets excited then something's not quite right.

Broadcom even sees artificial intelligence chip revenue doubling to $230 billion next year. But the earnings it posted last night are getting one big shrug.

It's a completely different story in the software sector. The market has been so terrible at pricing in the disruption of AI that the bar for earnings is practically on the floor. Snowflake's 35% revenue growth was enough to trigger a 20% gain ahead of the open.

The divergence encapsulates the AI trade right now. The chip rally, including memory plays like Micron, has paused, and the software comeback is on.

The broader market has a bigger problem-rising bond yields. The 10-year Treasury yield is creeping higher again, and unless that changes, Wednesday's stock market gains look like a one-off this week.

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📈 Here's what's happening in markets today:

Stock futures are wavering as bond yields remain elevated.

Broadcom, Snowflake, HPE, and more stocks that explain today's market.

Micron and China chip makers fight for market share. There's one big loser.

Tesla's Cybercab event is here. Will it deliver for the stock?

Ciena stock rises as AI drives demand and leads to an earnings beat.

Victoria's Secret stock sinks as turnaround narrative takes a hit.

🔲 Broadcom's outlook shows surging AI chip sales

AI chip sales growth is Broadcom's most closely watched metric, and it beat both its own guidance and the Wall Street consensus with 221% sales growth to $16.7 billion. It expects 236% growth in the current quarter. Most notably, Broadcom said it expected fiscal 2027 AI chip sales of $115 billion, growing to $230 billion in 2028.

💸 Supreme Court asked to weigh in on sports prediction markets

The Supreme Court may intervene in disputes between states, which regulate gambling, and federal regulators, who oversee the event contracts that drive prediction markets. New Jersey has requested a hearing in a case that could determine the fate of sports prediction markets important to DraftKings, Flutter Entertainment, and Kalshi.

🚕 Uber Technologies slashes staff to free funds for robo-taxis

Uber Technologies cutting roughly 10% of its global staff aims to shed middle management and free capital for a massive push into robo-taxis and other strategic initiatives. CEO Dara Khosrowshahi framed the decision as part of a broader effort to consolidate fragmented teams and concentrate workers in key hubs.

🤖 AI spending projected to be as big as U.S. economy by 2050

Cumulative spending on AI is expected to top $31 trillion by 2050, according to PwC, basically the current size of the U.S. economy. That is a global figure, with the U.S. making up half. Data-center spending will rise from about $800 billion in 2026 to $1.8 trillion a year by 2050, with power generation a main bottleneck to growth.

🍎 New Apple CEO has a lot riding on beating S&P 500 peers

New Apple CEO John Ternus has a major incentive to outperform the biggest U.S. companies. On top of his $3 million salary, he's eligible for an equity award with a target value of $55 million for fiscal 2027. Catch is 75% is performance-based restricted stock units that will vest based on Apple's total shareholder return relative to other S&P 500 companies.

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📰 Google avoids another business breakup attempt

Alphabet's Google won't be forced to sell its online exchange tool for publishers and advertisers, after all. Federal Judge Leonie Brinkema in Virginia dismissed the Trump administration's move to force that sale. Last year, she ruled that Google violated illegally maintained a monopoly in how ads show up on websites.

💬 Quote of the day:

Other headlines moving markets:

HPE's earnings soar but supply constraints aren't going away.

NetApp earnings beat estimates as revenue rises.

Why high-yield baby bonds offer investors a rare opportunity.

What the Fed's Beige Book says about jobs, inflation, data centers.

Elliott reported to oppose Deutsche Telekom's deal for T-Mobile US.

AI agents should scare everyone.

C3ai beats estimates as CEO touts AI software maker's 'turnaround.'

Reddit's Google data deal makes it one of the S&P 500's top picks.

For NIO the weak Chinese car market is hard to overcome.

Trump wants lower rates. That won't stop a Fed rate hike.

Snowflake earnings show a company riding the AI wave.

Netskope stock jumps on AI cybersecurity demand.

AST SpaceMobile stock gets a new buy call.

2 stock sectors to buy to avoid a sinister September.

The midterms will reshape markets. How 4 investing pros see it.

This energy storage stock gets a deal to power Google's data centers.

Daktronics says the SEC, NBA seek information on Kawhi Leonard.

How AI is reshaping retirement-and how to prepare.

European stocks have powerful catalysts for growth, says this market strategist.

The bond market is changing fast. Investors need a new playbook.

-Edited by Liz Moyer, Stacy Ozol, and Rupert Steiner