IDD Daily Brief: Wednesday, Oct 28, 2026 — Broadcom backstops $43 billion of AI racks as data center demand lifts earnings
> “Time is the friend of the wonderful business, the enemy of the mediocre.” — Warren Buffett
The Big Picture
- Broadcom put a number on its AI rack exposure. The chipmaker disclosed an arrangement in which financial partners take on agreements to buy AI racks built on its custom accelerators, with Broadcom backstopping up to roughly $43 billion of value.
- AI hardware demand powered another wave of earnings. Vertiv's sales jumped 61% with organic orders more than doubling, Teradyne's revenue rose 70%, and Corning's core sales grew 19% as optical communications sales climbed 44%.
- Dealmaking stayed busy. Guidewire agreed to buy hyperexponential for $1.7 billion, EnerSys agreed to buy Ultralife for $16 a share, and A. O. Smith agreed to sell most of its China business.
Company News
Broadcom (AVGO) said the rack arrangement was set up on Oct. 26, according to its 8-K.
Guidewire (GWRE) agreed to acquire London-based Hyperexponential for $1.7 billion in cash plus up to $400 million tied to recurring revenue targets. EnerSys (ENS) agreed to buy Ultralife through a cash tender offer valued at about $320 million, according to an 8-K.
A. O. Smith (AOS) agreed to sell an 81% interest in its China business to CPE in a deal valuing the unit at about $400 million and plans to prioritize buybacks with the proceeds. Vertiv (VRT) closed its roughly $1.45 billion purchase of microgrid provider UIG.
Cooper Companies (COO) said CEO Albert White left his role and the board, with director Walter Rosebrough named interim executive chair, according to an 8-K. Madison Square Garden Sports completed the Rangers spin-off and now operates as MSG Knickerbockers (MSGS).
TTM Technologies (TTMI) finished its $100 million buyback in two days of purchases and authorized a new $100 million program.
Earnings
Reported since yesterday's brief