Broadcom Slides as AI Backlog, Margins Scrutinized

President Donald Trump has authorized the sale of Nvidia's H200 artificial intelligence chips to approved customers in China, effectively lifting a previous export ban that was imposed due to national security concerns. This decision has drawn criticism from Senate Democrats, including Elizabeth Warren and Chuck Schumer, who argue that it undermines U.S. efforts to contain China's technological advancements.

The U.S. government has reversed its ban on Nvidia's H200 AI chip exports to China, allowing the company to sell these advanced chips to approved customers. This decision comes as Huawei's Ascend 910C chips have shown competitive performance in AI computing, prompting a reassessment of the export restrictions previously imposed due to national security concerns.

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.

Intel is set to acquire AI chip specialist SambaNova, a move aimed at bolstering its position in the competitive semiconductor market, particularly against rivals AMD and Nvidia. However, the acquisition is overshadowed by valuation concerns that have emerged during negotiations.

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.

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.