By Shaun Pruitt
Publication Date: 2025-12-15 23:07:00
Although Broadcom AVGO beat earnings expectations and Oracle ORCL The stock has fallen more than 15% since last week’s highly anticipated quarterly results.
The selloff comes as investors are spooked by rising costs, margin pressures and concerns about their AI-related spending, even though these tech giants have solid balance sheets.
While both companies are closely tied to AI infrastructure, which has been the hottest trade of the year, the market is now testing whether their increased spending on data centers and AI clusters will actually deliver profitable returns.
Image source: Zacks Investment Research
Broadcom reported blockbuster fiscal fourth-quarter results last Thursday, increasing its quarterly revenue by 28% to $18.01 billion. Earnings per share increased 37% to $1.95 compared to $1.42 per share in the comparable quarter. Broadcom also beat consensus estimates for revenue and profit by 2.94% and 4.28%, respectively…
