Broadcom Slides as AI Backlog, Margins Scrutinized

Broadcom's shares have significantly declined following a disappointing sales outlook that failed to meet investor expectations, mirroring a similar trend seen with Oracle's recent struggles in the AI sector. This downturn comes despite Broadcom reporting record revenue growth, highlighting investor concerns about future profitability.

The UK economy faces potential contraction as growth declines ahead of Chancellor Rachel Reeves' tax-raising budget, prompting discussions on the role of the tech sector in economic recovery. British Business Bank CEO Louis Taylor emphasized the strength of fintech and AI in the UK during a conversation with Bloomberg's Ed Ludlow and Caroline Hyde.

Margie Patel, senior portfolio manager at Allspring Global Investments, expressed confidence regarding AI stocks despite recent concerns surrounding Oracle's delayed AI data center completions and Broadcom's earnings. She discussed these issues on Bloomberg Tech, emphasizing that the end-of-year jitters should not deter investment in AI technologies.

China has decided to reject the purchase of Nvidia's H200 AI chips, as stated by David Sacks, who claims the country aims for semiconductor independence and intends to support Huawei. This decision comes amid U.S. efforts to facilitate Nvidia's sales to China, which were previously restricted due to national security concerns.

President Donald Trump signed an executive order aimed at preventing state-level regulations on artificial intelligence (AI) through legal actions and funding cuts, a move that has been welcomed by technology industry leaders advocating for a unified regulatory approach. David Sacks, the White House AI and Crypto Czar, discussed the implications of this order on Bloomberg Tech.

Nvidia has successfully trained its first AI model in space using a chip aboard a satellite, demonstrating the potential for advanced computing capabilities beyond Earth. This achievement signifies a major milestone in the integration of artificial intelligence with space technology.

AI lab Anthropic has placed a significant order totaling $21 billion with Broadcom for Google's Tensor Processing Units (TPUs), which are essential for powering advanced AI models. This order includes a $10 billion acquisition of Ironwood TPU racks in the third quarter of 2025, followed by an additional $11 billion order in the fourth quarter.

Broadcom has disclosed that Anthropic placed a substantial order worth $21 billion for Google's Tensor Processing Units (TPUs), which are critical for powering AI models. This order includes a $10 billion acquisition of Ironwood TPU racks in Q3 and an additional $11 billion in Q4, reflecting Anthropic's commitment to enhancing its AI capabilities.