The shares of companies exposed to artificial intelligence infrastructure came in for a beating after a report about Oracle Corp. data center delays added fuel to a selloff already underway following disappointing earnings results from chipmaker Broadcom Inc.

Broadcom on Thursday said its AI revenue will double in the current quarter, but shares slumped as investors focused on narrowing margins after a major run-up in the stock price.

An upbeat quarter doesn’t seem like enough to send Broadcom’s stock higher after a strong run so far this year.

Investors pulled back from the chip firm despite beating Wall Street’s expectations for quarterly earnings and revenue.

Broadcom (AVGO) has successfully pivoted from networking silicon to AI custom chips, partnering with OpenAI, Google, and Meta Platforms Inc.

Broadcom (NASDAQ:AVGO) is scheduled to announce its earnings on Thursday, December 11, 2025. The company currently holds a market capitalization of $1.9 trillion. Over the past twelve months, it generated $60 billion in revenue and maintained operational profitability with $23 billion in operating profits and net income amounting to $19 billion.

Yesterday we were watching whether Broadcom could sustain its AI momentum and deliver guidance that justified its 75% rally this year. The company beat on both revenue and earnings after the bell, and CEO Hock Tan delivered the kind of forward commentary investors wanted to hear.

Broadcom President and CEO Hock Tan disclosed that Anthropic signed a $10 billion custom chip deal this fall with Anthropic, followed by a new $11 billion deal.

Some investors are selling Broadcom stock in the wake of its blockbuster financial report. That could be a costly mistake.