By Laura Bratton
Publication Date: 2025-12-12 18:50:00
Broadcom (AVGO) stock fell more than 10% on Friday after the company’s quarterly results revealed investor concerns about the profitability of its AI business.
The company reported results late Thursday that topped Wall Street forecasts. The top Google (GOOGL, GOOG) chip supplier reported it received orders from leading AI developer Anthropic (ANTH.PVT) that surged to $21 billion.
But Friday’s decline took more than $200 billion off the chipmaker’s market cap after Broadcom guided for a gross margin of 76.9% for the current quarter, which would mark a decline from 79% in the year-ago period.
It would also be a step down from 77.9% in the fourth quarter and 78.3% in the third quarter — although these figures still represent extremely high profitability.
Read more about today’s market action.
Meanwhile, the company’s AI chip sales soared 74% to $6.4 billion from the previous year, ahead of the $6.2 billion projected by Wall Street analysts tracked by…
