Broadcom Follows Oracle in Disappointing AI-Focused Investors | Bloomberg Tech 12/12/2025

Moore Threads Technology Co. recently celebrated a significant debut on the Shanghai stock exchange, marking the second-largest initial public offering in China this year. This event has generated considerable excitement among investors regarding China's advancements in artificial intelligence (AI) chips, despite underlying concerns about the sustainability of this enthusiasm.

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.

Broadcom's stock experienced its most significant decline in ten months after the company reported a sales outlook that fell short of investor expectations, raising concerns about its competitiveness in the AI chip market against rivals like Nvidia.

China has decided to reject the purchase of Nvidia's H200 AI chips, opting instead for domestically produced semiconductors. This decision comes as the U.S. has attempted to facilitate Nvidia's sales to China, which were previously restricted due to national security concerns, as noted by White House AI czar David Sacks.

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.

Oracle's recent $300 billion investment in artificial intelligence, spearheaded by Larry Ellison, has become a focal point in Silicon Valley's current tech boom, raising questions about its sustainability and potential as a bubble indicator.

The European Commission is facing criticism from the Cloud Infrastructure Services Providers in Europe (CISPE) for allegedly failing to adequately assess the implications of Broadcom's acquisition of VMware. CISPE claims that the deal could negatively impact customers by reducing competition in the cloud services market.

The Trump administration has approved the sale of Nvidia's H200 AI chips to China, marking a significant policy shift that allows the company to re-enter a crucial market after previous restrictions. This decision follows extensive negotiations between tech advocates and defense officials, aiming to facilitate the use of these advanced chips by Chinese companies.