Oracle, Broadcom: communication errors – bullish tone when the market only hear concerns

Dec 12, 2025

∙ Paid

Oracle: results were decent. Management released a huge Remaining Performance Obligation number aka future AI Infra revenue. That spooked the market. To reach that revenue level Capex must keep going up? Margins going down? Where’s the financing?
Broadcom: a very good quarter, AI semi revenue guidance back on track, little concern over margins dilution – it was a good quarter. What the market didn’t like? Probably that Broadcom will reach its 2027 revenue target (previously $60-90bn, now looks like 70-75bn) with 5 customers, not 3. Google will be smaller than expected (~30bn), Anthropic very large (20+bn).
The key point is that results and outlook (for both) were ok to good; market reaction very negative. I think fair conclusions: 1) the AI narrative is dead for now – investors want to see profits, not revenues 2) the correction is especially steep for expensive stocks like Oracle and Broadcom (Nvidia, TSMC aren’t that expensive) 3) the overall market is correcting and the question is: after the October correction, are we heading to a lower low? I think yes.

** PAYWALL **

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