The Rundown Broadcom Delivers Weak AI Sales Outlook, Lululemon CEO to Resign
8 snips
Dec 12, 2025 The market faces S&P record highs and NASDAQ struggles as sector rotation unfolds. Broadcom posts a strong quarter, but investors are anxious due to the lack of full-year AI guidance. Lululemon's CEO resignation triggers a stock rally as optimism rises. Cannabis stocks are gaining traction with possible reclassification, while Fermi crashes after losing a major deal. The latest developments in Google's Disco AI Browser spark curiosity and concern about its performance.
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Record Sales, Weak Visibility
- Broadcom posted a record quarter with AI revenue surging but its stock fell because management refused to give a full-year AI revenue forecast.
- Investors worry lower AI chip margins and flat non-AI revenue could dent profitability despite strong sales.
AI Backlog And Growth Trajectory
- Broadcom expects AI revenue to roughly double to about $8.2 billion in Q1 and reported a $73 billion AI product backlog.
- The company's fastest-growing segment is custom AI chips for major cloud and AI companies.
Leadership Change Sparks Rally
- Lululemon's CEO Calvin McDonald will step down after seven years and the stock jumped over 10% on the news.
- Founder Chip Wilson has publicly criticized management and investors hope new leadership will reignite growth.