Broadcom Shares Tumble as AI Outlook Disappoints Investors

• Broadcom shares tumbled after its AI sales outlook failed to meet investor expectations, despite a reported $73 billion order backlog.
• CEO Hock Tan's vague timetable for AI payoff and concerns about tightening profit margins contributed to the stock's 8.3% intraday drop.
• The company reported strong overall earnings and an $11 billion AI order from Anthropic but declined to provide a 2026 AI revenue forecast.
• Broadcom's AI semiconductor revenue is projected to double to $8.2 billion in Q1, driven by demand for custom chips and partnerships with AI firms like OpenAI.

Why It Matters: Broadcom's stock drop shows AI market expectations are high for chipmakers.