Broadcom(US:AVGO) Hua Er Jie Jian Wen·2025-12-12 23:25Market Overview - Oracle's recent delays in data center projects have heightened investor anxiety regarding AI, leading to a decline in market sentiment [2][19] - The S&P 500 fell by 1.1%, while the Dow Jones and small-cap indices also retreated from historical highs, with the Nasdaq 100 dropping over 2% [2] - The semiconductor index plummeted over 5%, erasing nearly all gains since December, with Nvidia down 3.27% and Broadcom experiencing an 11% drop, marking its worst single-day performance since January [2] Key Financial Indicators - Long-term U.S. Treasury yields rose, with the 10-year yield increasing by nearly 3 basis points [3] - The U.S. dollar fell by 0.35%, dipping below the 98 mark, with a cumulative decline of nearly 1% for the week [3] - Bitcoin and Ethereum dropped by 3.6% and 5.6%, respectively, following the downturn in tech stocks [3] Notable Developments - China's new social financing in November reached 2.49 trillion yuan, with new RMB loans amounting to 390 billion yuan, indicating an expanding M2-M1 gap [4] - Chinese officials emphasize the need for flexible monetary policy tools to manage economic stability and support key sectors [5][17] - Trump is considering candidates for the Federal Reserve chair position, expressing a desire for lower interest rates [18] Company-Specific News - Oracle's stock fell sharply after reports of delays in data center completion dates, which were later denied by the company [19] - Broadcom's earnings call disappointed investors, revealing a backlog of $73 billion in AI product orders, which some viewed as insufficient [20] - Goldman Sachs remains optimistic about Broadcom's AI business despite not raising its fiscal 2026 guidance, believing the company is well-positioned in the custom chip market [7][20] Industry Trends - Texas is experiencing a surge in large-scale projects, with over 220 GW of applications for grid connection by 2030, primarily driven by data centers [21] - The AI sector is witnessing significant investment, with Wall Street optimistic about companies like Baidu, which is expected to replicate Google's success in AI [21] - High expectations for AI commercialization are set for 2026, with various industry themes emerging, including the integration of generative AI and the evolution of advertising and e-commerce [22]