Broadcom earnings, AI's PR problem, Musk takes the stand and more in Morning Squawk

In a notable update from the financial world, Broadcom has reported impressive earnings that surpassed market expectations for its first fiscal quarter. The chipmaker's revenue has surged, and its stock has risen by 6.5% in after-hours trading. CEO Hock Tan revealed ambitious projections, stating that the company anticipates over $100 billion in revenue from its artificial intelligence chips by 2027. This growth is bolstered by a supply chain capable of meeting the increasing demand for AI technology, with Broadcom's AI revenue more than doubling compared to the same quarter last year. In legal news, Elon Musk took the stand in a federal court on Wednesday, countering claims of civil securities fraud tied to his acquisition of Twitter, now rebranded as X. Investors allege that he attempted to manipulate the stock price to facilitate a cheaper purchase. Musk's defense maintains that he never intended to harm the company or its stakeholders, asserting, "My tweets sometimes have the opposite effect of what one would expect on stock prices." As discussions around artificial intelligence heat up in the context of the upcoming midterm elections, former President Trump pointed out the technology's need for a better public relations strategy. He highlighted how AI data centers are being blamed for soaring energy costs, a significant issue that could influence voter sentiment as Democrats emphasize the cost of living. Despite Trump's earlier pledge to halve energy prices in his first year, federal data indicates a 6% rise in average residential costs nationally in 2025. In a related event, Trump convened several influential tech executives at the White House to endorse a pledge for self-sustained energy for data centers. However, this commitment lacks any binding obligations, raising questions about its practical impact. Moreover, the global travel industry faces significant challenges following recent military actions in the Middle East. The strikes have led to the cancellation of at least 20,000 flights, stranding over a million travelers. Industry experts describe this week as one of the most tumultuous periods for aviation in recent memory, compounded by recent disturbances in Mexico that had already affected travel plans. In response, inquiries for "cancel for any reason" travel insurance have surged as travelers seek to safeguard their plans amidst the chaos.