CNBC Daily Open: Investors sell off tech despite steady Broadcom numbers

Core Viewpoint - The sell-off in artificial intelligence stocks, particularly affecting Broadcom, has raised concerns among investors regarding lower margins and uncertain deals, leading to declines in major U.S. indexes [1][2]. Group 1: Company Performance - Broadcom shares fell more than 11% amid investor concerns, despite the company exceeding earnings expectations and providing positive guidance for the current quarter [1][3]. - Analyst Stacy Rasgon from Bernstein maintains a "buy" rating on Broadcom, highlighting the company's strong performance in the AI sector [3]. Group 2: Market Trends - The Dow Jones Industrial Average rose 1.1% week on week, driven by financial stocks, while the S&P 500 and Nasdaq Composite fell by 0.6% and 1.6% respectively, influenced by the tech sector's performance [2]. - Investor sentiment appears jittery due to fears of an AI bubble, with negative news causing significant market reactions [3][4]. Group 3: Future Outlook - UBS anticipates high profitability for Broadcom, driven by the accelerating impact of AI and other themes, projecting strong performance into 2026 [4]. - However, short-term investor confidence may remain fragile until more reassuring developments occur, such as Oracle achieving positive cash flow [4].