Broadcom(US:AVGO) Zhong Guo Ji Jin Bao·2025-12-12 23:19Market Overview - The U.S. stock market is experiencing a divergence, with the Dow Jones index reaching a new all-time high while the tech-heavy Nasdaq index is declining [1][2] - Investors are shifting funds from technology stocks to value-oriented sectors, leading to a drop of over 1% in the Nasdaq [2] AI Sector Performance - Concerns regarding the AI trading environment are intensifying, putting pressure on technology stocks [3] - Broadcom's stock fell approximately 10% despite reporting better-than-expected Q4 earnings and a strong outlook, as CEO Hock Tan indicated that the gross margin for rapidly growing AI revenue is lower than that of non-AI revenue [5][10] - Broadcom's Q4 profit was $8.518 billion, with sales of $18.02 billion, surpassing analyst expectations [5] Company-Specific Developments - Broadcom has a backlog of $73 billion in AI product orders, which will be delivered over the next six quarters, but this figure disappointed some investors [5] - Fermi, a power developer, saw its stock plummet by 40% after a tenant terminated a $150 million agreement related to an AI campus project in Texas, raising concerns about potential bubbles in AI-related infrastructure [7][8] Broader Market Sentiment - The S&P 500 has risen by 0.45% this week, while the Dow has increased by nearly 1.6%, indicating a stronger performance in small-cap stocks compared to the Nasdaq [11] - Analysts suggest that if the trend of the Dow continues, it may indicate a broader market rally beyond just a few large-cap stocks, with expectations for market leadership to diversify in 2026 [10]