Broadcom’s quarterly results beat Wall Street estimates, but shares dropped 11% due to negative sentiment around AI trade. Nasdaq and S&P 500 both fell. Broadcom saw revenue growth of 28%, with AI chip sales up 74%. CEO expects AI chip sales to double this quarter to $8.2 billion. Company has a $73 billion backlog of AI orders.

Investors concerned about margins due to higher upfront costs for AI chip systems. CFO mentioned gross margins will be lower in the short term. Broadcom revealed $21 billion in orders from Anthropic, but CEO downplayed expectations for OpenAI deal in ’26. Analysts believe “AI angst” is driving Broadcom’s stock lower.

Oracle shares down over 40% from record, facing skepticism after earnings report. CoreWeave, investing in cloud-based AI services, saw shares plummet 9% and lose half their value since June peak. Analysts recommend buying Broadcom stock despite market volatility.

Read more at CNBC: Broadcom tumbles 10% after earnings as AI trade sells off