Core Insights - Broadcom's stock fell nearly 9% after the company warned that rising AI revenue would lead to lower profit margins, disappointing investors who anticipated a successful transition to custom chips for hyperscalers [1][2] - Despite beating Wall Street estimates with Q4 revenue of $18.02 billion and guiding for Q1 revenue of $19.1 billion, the margin warning overshadowed the positive earnings report [1][2] Financial Performance - In Q4, Broadcom reported adjusted EPS of $1.95 on revenue of $18.02 billion, exceeding estimates of $1.87 and $17.45 billion [2] - AI semiconductor revenue reached $8.3 billion in Q4, significantly surpassing prior guidance of $6.2 billion [2] - For fiscal 2025, Broadcom achieved record revenue of $64 billion, a 24% increase, with AI revenue soaring 65% to $20 billion [3] Margin Concerns - CFO Kirsten Spears projected a decline in Q1 gross margins by approximately 100 basis points due to a higher mix of AI revenue, raising concerns among analysts [4] - The shift towards lower-margin system sales, where component costs are passed through to customers, is expected to grow, impacting overall gross margins [4][5] - Custom AI chips and systems inherently carry lower gross margins compared to traditional software products, leading to a compression in gross margin percentage despite absolute dollar profit growth [5] Customer Concentration Risk - The $73 billion backlog is heavily reliant on just five customers, including Google, Meta, and Anthropic, which poses a concentration risk [6] - Any slowdown in orders or a shift to in-house chips by major customers could significantly impact Broadcom's growth trajectory [6] Market Position and Outlook - Despite the sell-off, Broadcom's operating margins remain strong at 66.2% in Q4, and the company is well-positioned as a beneficiary of hyperscalers' demand for custom silicon [7] - The substantial backlog provides unusual revenue visibility, but the margin warning indicates potential challenges ahead [7]

格隆汇12月12日｜博通(AVGO.US)大跌超7%，公司称第一财季毛利润率将因AI产品而收缩1%。 ...

Group 1 - Broadcom's stock fell 8.4% after the company warned of reduced future margins on AI system sales, despite projecting strong quarterly revenue, raising concerns about the profitability of AI investments [1][10] - Other chip stocks, including Advanced Micro Devices, experienced a decline of 1%, while a broader chips index fell by 1.5% following Oracle's weak forecast [2][10] - Nvidia's stock increased by 0.3% as the company is considering raising H200 chip production to meet strong demand from China [11] Group 2 - The S&P 500, Dow, and Russell 2000 closed at record highs, supported by a less hawkish outlook from the Federal Reserve and a reduction in borrowing costs [5][11] - A shift towards value stocks is evident, with the Russell 2000 outperforming the S&P 500 as investors move away from AI-driven growth stocks to sectors like healthcare [6][11] - Lululemon Athletica's stock surged by 12% after the company raised its annual profit forecast and announced the departure of CEO Calvin McDonald [11] Group 3 - Cannabis companies saw significant stock increases, with Canopy Growth rising by 23% and Tilray Brands climbing by 30% following reports of potential easing of marijuana restrictions by President Trump [9][11] - Advancing issues outnumbered decliners on both the NYSE and Nasdaq, indicating a positive market sentiment [9][11] - The S&P 500 recorded 24 new 52-week highs and one new low, while the Nasdaq Composite noted 66 new highs and 37 new lows, reflecting a mixed performance in the market [9][11]

A handful of remaining major companies reported their quarterly results this week, including Oracle (ORCL) and Broadcom (AVGO). The Q3 earnings season has largely brought solid results. As of Dec. 5, 99% of S&P 500 companies have reported, according to FactSet data, and analysts estimate a 13.4% jump in earnings per share during the third quarter. If it holds, that figure would mark the fourth straight quarter of double-digit earnings growth and an acceleration from the 12% earnings growth rate reported i ...

and Kevin Hanks at the CBOE the pre-bell playbook joining us now live from there. Good morning. So I was just saying how it was a record setting day.I mean intraday we saw the Dow hitting highs and you know stocks took off right after the Fed meeting on Wednesday and managed to clock in some wins. What are your thoughts this morning. Good morning Kevin. >> Good morning Nicole.You know, I think this is an interesting market to pay attention to because it seems to be the revenge of the 493. It's the equal wei ...

Broadcom ( AVGO ) just dropped its 4QFY25 results, comfortably sliding ahead of expectations, reporting $18.02B for the quarter, better than the expected $17.49B, and guiding for 1QFY26 sales of $19.10B, higher than the $18.3B anticipated. The stock is up about 3% on the resultsTech Stock Pros is a team of three former technology sector engineers with a long history of investing in the tech sector. They run Tech Contrarians, an investing group providing institutional-level company research to individual inv ...

Core Insights - Broadcom (AVGO) reported 4QFY25 results of $18.02 billion, exceeding expectations of $17.49 billion, and provided guidance for 1QFY26 sales of $19.10 billion, higher than the anticipated $18.3 billion [1] Group 1: Financial Performance - The company's quarterly revenue of $18.02 billion represents a strong performance compared to market expectations [1] - Guidance for the next quarter indicates a positive outlook with projected sales of $19.10 billion [1] Group 2: Market Reaction - Following the earnings report, Broadcom's stock increased by approximately 3% [1]

Brasada Capital Management, an investment management company, released its Q3 2025 investor letter. A copy of the letter can be downloaded here. In the letter, the firm noted that the market entered the fourth quarter with equities near all-time highs and monetary policy easing. The firm also believes that this momentum could persist even though there are indications that a capital expenditure bubble exists. Further, the firm continues to invest selectively in companies with solid moats and cash flows, whil ...

U.S. stock futures are presenting a mixed picture this Friday, December 12, 2025, as investors grapple with lingering concerns about a potential bubble in artificial intelligence (AI) stocks, even as the broader market continues to digest the Federal Reserve's recent interest rate cut. While Dow Jones Industrial Average futures are pointing higher, S&P 500 and Nasdaq 100 futures are showing slight declines in premarket trading, indicating a cautious start to the day.Premarket Activity and Futures MovementsA ...

展望未来，该公司表示，截至2月1日的第一财季销售额约为191亿美元，分析师平均预期为185亿美元。 第一财季人工智能半导体营收预计同比增长一倍，达到82亿美元。该公司还将季度股息提高了10%，至 每股65美分。 智通财经APP获悉，周五，博通(AVGO.US)盘前跌超5%，报383.70美元。消息面上，此前这家芯片制造 商公布的人工智能积压订单略微逊色。在截至11月2日的第四财季，博通公司公布的销售额为180亿美 元，同比增长28%，分析师预期为175亿美元。不计部分项目，每股收益增至1.95美元，分析师预期为 1.87美元。其中，半导体业务营收为110.7亿美元，同比增长34.5%;基础设施业务营收增长19%，达到 69.4亿美元。 首席执行官Hock Tan表示，公司目前积压了价值730亿美元的人工智能产品订单，这些订单将在未来六 个季度内交付——这一数字令一些投资者感到失望。但Tan随后澄清，这只是一个"最低值"。他说 道："我们预计未来六个季度内，随着更多订单的到来，交货量还会大幅增加。因此，根据具体产品的 不同，我们的交货周期可能从六个月到一年不等。" ...