Broadcom tumbles 11% despite blockbuster earnings as ‘AI angst’ weighs on Oracle, Nvidia

Broadcom’s quarterly results and guidance sailed past Wall Street estimates. It didn’t matter.

The chipmaker’s shares plummeted 11% on Friday, their worst day since January, as investors ran for the exits on the artificial intelligence trade. Oracle

 dropped 4.5% a day after plunging 10% following its earnings report.

Nvidia and Advanced Micro Devices, the two leading makers of graphics processing units for AI workloads, slid about 3% and 5%, respectively.

AI has been the driver for the stock market and the broader economy this year, so any negative sentiment has potentially far-reaching consequences. The Nasdaq on Friday fell about 1.69%, and the S&P 500 declined by 1%.

The companies getting hit the hardest are the ones most closely tied to AI infrastructure, which has been booming as hyperscalers build out their data centers to try and meet what they describe as insatiable demand for compute-intensive AI services. Broadcom makes custom chips for many of the the largest tech companies, and saw its market cap about double each of the past two years before rallying again in 2025.