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.

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.

The chip designer reported rapid revenue growth as demand continues to rise for chips to fill the data centers that power artificial-intelligence models.

Broadcom’s lack of disclosure around its newest AI customer — the company’s fifth — has investors confused about the company’s work with OpenAI.

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 (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.

Broadcom stock dips after Q4 earnings, but booming AI chip revenue signals 2026 growth. Click here to read my earnings analysis of AVGO stock.

Broadcom shares fell more than 11% on Friday after the chipmaker warned growing sales of lower-margin custom AI processors were squeezing profitability, sparking worries that the business may be less lucrative.