Broadcom falls as tiny top- and bottom-line beats underwhelm following massive rally

Broadcom delivered a small beat on the top and bottom lines in its fiscal second quarter.

Revenues were $15 billion, compared to an estimate of $14.96 billion, while adjusted earnings per share of $1.58 were two pennies above what Wall Street had penciled in.

Its third-quarter guidance continued the theme of good, but not great: the outlook is for sales of about $15.8 billion (est. $15.72 billion).

Shares dipped as much as 4.5% in a knee-jerk response to earnings. The options-implied earnings move is about 6.8%.

The Robin to Nvidia’s Batman hit a fresh record high on Tuesday after saying shipments of its new AI hardware had commenced, and continued to gain on Wednesday before retreating a touch ahead of this report.

Shares were up nearly 80% since its early April 2025 low heading into earnings.

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Luke Kawa4h

iRobot files for Chapter 11 bankruptcy just 11 days after its record one-day gain

Last one to leave the Roomba, please turn off the lights.

iRobot, maker of robotic vacuums and other cleaning products, announced that it was filing for Chapter 11 bankruptcy on Sunday as part of a restructuring agreement that would see 100% of the company’s equity interests be acquired by its secured lender and its primary contract manufacturer, Shenzhen PICEA Robotics Co., Ltd. and Santrum Hong Kong Co., Limited.

In a press release, the company said that this move “will delever the Company's balance sheet and enable iRobot to continue operating in the ordinary course, pursue its product development roadmap, and maintain its global footprint.”

Shares of iRobot recently booked their biggest one-day gain on record, rising 74% on December 3 on the heels of a Politico report that the Trump administration was planning on going “all in” to boost the robotics industry.

That report spurred a wave of buying from traders who were presumably looking to get exposure to the theme, enticed by the name of a company that has “robot” in it, and less than fully versed on its financial position. Back in March, management had warned investors that “there is substantial doubt about the Company's ability to continue as a going concern for a period of at least 12 months.”

Volumes exceeded 228 million on Dec 3, also far and away a daily record for the stock.

Toby Bochan, Luke Kawa

12/12/25

Markets end the week in the red as Broadcom and Oracle concerns drag the entire AI trade down

The S&P 500, Nasdaq 100, and Russell 2000 were all negative on Friday.

Matt Phillips12/12/25

Data center trade deep in the red

The data center trade is seeing its steepest sell-off since the market rout that was ignited by President Donald Trump’s Rose Garden tariff announcement back in April.

Goldman Sachs’ themed basket of AI data center shares was down more than 6% at around 12 p.m. ET, putting it on track for its worst day since the tariff announcement.

Losses hammered seemingly every form of input needed for the sprawling concrete server warehouses at the heart of the investment boom.

Hardware makers including data storage companies like Sandisk, Western Digital, and Seagate Technology Holdings, as well as DRAM maker Micron — some of the best-performing stocks in the S&P 500 this year — were taking a licking, as were networking stocks Cisco and Arista Networks and data center builders such as Vertiv Holdings and electrical and mechanical contractor Emcor.

Optimism for all things AI has seemed to evaporate throughout the week, as the stock market greeted lackluster quarterly numbers from Oracle and Broadcom with jittery sell-offs and concern about growing debts that could crater cash flows.

Those worries seem to be spreading to ancillary beneficiaries of the AI boom on Friday, gouging a chunk out of charts that retail dip buyers have not — at least so far — stepped in to buy as we head into the weekend.

Luke Kawa12/12/25

Oracle denies Bloomberg report that it’s delaying some data centers for OpenAI to 2028 from 2027

Getting a multi-hundred-billion-dollar backlog for cloud computing revenues from data center projects is easy. Building them is hard.

Oracle extended declines to as much as -6.5% on the day on the heels of a Bloomberg report that the cloud giant has pushed back the completion dates for some of the data centers it’s building for OpenAI to 2028 from 2027, citing people familiar with the work. Oracle denied this report, telling Reuters that there have been no delays to any sites required to meet its contractual commitments and that all milestones remain on track.

Shares had fully pared their report-induced drop ahead of Oracle’s reply, but remain in the red for the day.

Bloomberg said the reported postponement was attributed to labor and material shortages.

Oracle has been spending more on capex than Wall Street had anticipated, leading to higher-than-expected cash burn. Management boosted its full-year capital spending plans by $15 billion after reporting Q2 results earlier this week.

Oracle’s cloud infrastructure sales came in short of estimates in its fiscal 2026 Q2, a signal that markets already had reason to doubt its ability to quickly turn its humungous RPO (that is, remaining purchase obligations) into revenues.

Traders also seem to be of the mind that potential delays to data center completions are going to limit sales for what goes into them.

Some of the bigger losers since the Bloomberg headline hit the wires include:

Nvidia and Advanced Micro Devices, the latter of which struck a deal to deploy 50,000 of its AI chips in Oracle data centers.
AI REITs like Equinix and Digital Realty.
Server company Dell as well as other AI-geared stocks like Constellation Energy, Arista Networks, Corning, Generac Holdings, Quanta Services, Vistra, and Eaton Corp.

Luke Kawa12/12/25

Broadcom’s post-earnings tumble is weighing on Google’s entire AI ecosystem

Broadcom’s post-earnings plunge is prompting a sharp pullback in Google-linked AI stocks, which had been on fire thanks to the warm reception to Gemini 3.

The stocks getting hit hard:

Celestica, which supports Broadcom’s Tomahawk switch chipset for AI networking.
TTM Technologies, which manufactures the circuit boards that are the foundation for Broadcom’s AI chips.
Lumentum, whose laser technology lets information move around quickly in data centers.

A basket of these Google-linked AI stocks compiled by Morgan Stanley is suffering one of its worst losses of the year. This brisk retreat also follows the release of GPT-5.2 by OpenAI.

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