December Nasdaq 100 E-Mini futures (NQZ25) are trending down -0.58% this morning as Broadcom’s earnings report prompted further concerns about the AI trade.
Broadcom (AVGO) slid over -5% in pre-market trading after the software and semiconductor giant’s sales outlook for the AI market fell short of investors’ lofty expectations. Chief Executive Officer Hock Tan said on a conference call that the company has a $73 billion backlog in AI product orders to be delivered over the next six quarters. However, this figure disappointed some investors. The company also said margins would decline due to a higher mix of AI-related revenue, adding to concerns about returns from AI.
