Justin Sullivan/Getty Images Broadcom is the latest AI darling to get punished by investors after solid earnings. The chipmaker reported strong earnings for the fourth quarter, but disappointed on its outlook. Investors appeared to take issue with the firm's backlog of AI orders and limited AI revenue guidance. Broadcom is the latest victim of investors punishing high-flying AI companies. The chipmaker tumbled 8% as investors took in its stellar results for the last quarter, but were left disappoi ...

Market Overview - Three of the four major indexes reached new closing highs, with the Dow gaining +646 points (+1.34%), S&P 500 increasing +14 points (+0.21%), and Russell 2000 rising +31 points (+1.21%) [1] - The tech-heavy Nasdaq experienced a slight dip of -60 points (-0.25%) due to concerns over Oracle's recent performance, indicating potential challenges in the AI sector [2] Company Earnings Reports - Broadcom (AVGO) reported fiscal Q4 earnings of $1.95 per share, exceeding the Zacks consensus of $1.87, with revenues of $18.02 billion surpassing the $17.50 billion estimate. AI semiconductor revenue grew +74% year over year [3] - Broadcom raised its fiscal Q1 revenue guidance to $19.1 billion, with AI semiconductor business expected to generate $8.2 billion next year, doubling from the previous year [4] - Costco (COST) reported mixed fiscal Q1 results, with earnings of $4.50 per share exceeding the $4.26 consensus, but sales of $65.98 billion fell short of the $67.33 billion estimate, leading to a marginal decline in shares [5] - Lululemon (LULU) shares rose over +10% following a strong Q3 earnings report, with earnings of $2.39 per share and revenues of $2.6 billion, surpassing analyst expectations of $2.48 billion [6]

Core Viewpoint - Broadcom's shares have increased by approximately 3% after reporting strong earnings, with expectations for AI semiconductor revenue to double year-over-year and current quarter revenue outlook exceeding estimates [1]. Group 1: Financial Performance - Broadcom's AI revenue exceeded expectations, with guidance indicating an improvement of about $700 million compared to prior estimates [4]. - The company is experiencing strong demand, particularly from Google for its Tensor Processing Units (TPUs), which is contributing to the positive revenue outlook [4][5]. Group 2: Market Position and Competition - The performance of Broadcom's AI accelerators is attributed to better-than-expected results from three major customers, along with a fourth customer that has not been disclosed yet [2][3]. - The report suggests that Broadcom's success may serve as a counter-narrative to concerns raised by Oracle regarding the AI market, particularly as Oracle focuses on GPU technology rather than TPUs [5]. Group 3: Valuation Insights - Current valuation appears stretched for the next 12 months, but projections for 2027 suggest a more reasonable valuation in the high 20s, considering the potential for new customer acquisitions [6].

By Juby Babu Dec 11 (Reuters) - Broadcom projected first-quarter revenue above Wall Street estimates on Thursday, but said that margins would fall due to a higher mix of AI revenue, ​and shares fell 5% in extended trading. Broadcom has jumped into the AI chip business, which has ‌investors nervous about the profitability and costs of enormous investments. The company has a backlog of $73 billion that it anticipates shipping ‌over the next 18 months, CEO Hock Tan said on a post-earnings call, but his lieu ...

NicoElNino/iStock via Getty Images FINVESTMENT PERFORMANCE (%) as of September 30, 2025 Total Return Annualized Return Qtr YTD 1 Year 3 Year 5 Year Inception* Palm Valley Capital Fund (MUTF:PVCMX) 2.35% 3.77% 3.68% 7.13% 6.03% 6.85% S&P SmallCap 600 Index (SP600G) 9.11% 4.24% 3.64% 12.80% 12.93% 8.10% Morningstar Small CapIndex 7.99% 8.80% 9.15% 16.24% 12.25% 8.50% * Inception date for the Palm Valley Capital Fund is 4/30/19 Performance data quoted represents past performance and does not ...

If the U.S. continues to impose AI semiconductor restrictions on China, then chipmaker Huawei will take advantage of its position in the world's second-largest economy, Nvidia CEO Jensen Huang told CNBC Thursday."Our technology is a generation ahead of theirs," Huang told CNBC at the sidelines of the Viva Technology conference in Paris.However, he warned that: "If the United States doesn't want to partake, participate in China, Huawei has got China covered, and Huawei has got everybody else covered."In the ...

Key Takeaways Top-ranked Broadcom was returned from the Zacks Artificial Intelligence screen. Zacks has 30 Thematic Screens available, covering all sides of the market. Broadcom is on deck to report quarterly results this week. Zacks Thematic Screens lets you dive into 30 dynamic investment themes shaping the future. Whether you're interested in cutting-edge technology, renewable energy, or healthcare innovations, our themes help you invest in ideas that matter to you.Let’s take a closer look at the Artif ...