Bloomberg Tech Broadcom Follows Oracle in Disappointing AI-Focused Investors
9 snips
Dec 12, 2025 David Sachs, a Senior White House advisor on AI and crypto, brings his insights on federal policies and the executive order aimed at regulating AI. He delves into the need for a cohesive national framework to discourage excessive state regulations. The conversation also touches on the implications of China’s ambitious semiconductor incentives and how they impact U.S. competitiveness. Sachs highlights the federal government's proactive stance against state laws that may hinder innovation in AI.
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Backlog Isn't The Same As Forward Revenue
- Broadcom reported a $73 billion AI backlog but refused to give a firm FY26 AI revenue forecast because the market is a moving target.
- Investors focused on forward-looking revenue and margin mix, especially lower-margin Anthropic TPU sales, which sank the stock despite strong near-term AI results.
Broadcom Aims For A Full Solution Stack
- Broadcom is building a full solution stack across networking and compute, similar to NVIDIA, positioning it for scale-up AI infrastructure.
- That vertical stack plus control of networking and compute gives Broadcom long visibility into supply-demand tightness across the AI supply chain.
China Plans Massive Chip Subsidies
- China plans a massive semiconductor subsidy potentially up to $70 billion to accelerate domestic chip capacity and champions like Huawei and SMIC.
- The program rivals the U.S. CHIPS effort but will still face equipment and yield constraints for advanced nodes.
