OpenAI Drives Broadcom AI Chip Sales While Google Uses Anthropic TPUs

Oracle's stock experienced a significant drop, falling as much as 15%, after the company reported fiscal second-quarter cloud sales that missed analyst expectations. Cloud sales increased 34% to $7.98 billion, while infrastructure revenue grew 68% to $4.08 billion. A major concern for investors is Oracle's escalating capital expenditures, now projected to reach approximately $50 billion by May 2026, a $15 billion increase from its September forecast. This substantial investment in AI data centers, which support clients like OpenAI, ByteDance's TikTok, and Meta Platforms, has led to a negative $10 billion free cash flow and raised questions about the immediate returns on AI investments. In contrast, Broadcom Inc. delivered a strong revenue forecast, anticipating fiscal first-quarter revenue around $9.4 billion and full fiscal year 2024 revenue near $50 billion. The company expects its AI semiconductor revenue to double year-over-year to $8.2 billion, driven by high demand for its specialized AI chips. Broadcom has secured deals for custom chip designs with major AI providers, including OpenAI, and its designs are utilized in Google Cloud TPUs for Anthropic. Broadcom's shares rose about 3% following this positive outlook. Elsewhere in the AI sector, Snowflake's stock has surged 43.7% this year, outperforming Nvidia and major indices, thanks to strong operating results. The company's Data Cloud and Cortex AI platform, featuring tools like Document AI, are attracting businesses. Snowflake reported $1.16 billion in product revenue for its fiscal 2026 third quarter, a 29% increase. However, concerns persist regarding its high valuation and significant stock-based compensation. Meanwhile, BigBear.ai shares fell 1.7% after missing earnings per share estimates, despite slightly beating revenue forecasts. The company plans to acquire Ask Sage for $250 million to boost its generative AI offerings for government use. Chinese AI startups MiniMax and Zhipu, backed by Alibaba and Tencent, are reportedly planning Hong Kong IPOs, positioning themselves as potential rivals to OpenAI. Additionally, software company Harness achieved a $5.5 billion valuation after a $200 million Series E funding round led by Goldman Sachs, focusing on using AI to enhance software engineering processes.

Key Takeaways

• Oracle's stock fell up to 15% after fiscal second-quarter cloud sales of $7.98 billion (34% growth) missed estimates.
• Oracle projects capital expenditures to reach $50 billion by May 2026, a $15 billion increase, due to AI data center investments for clients like OpenAI, ByteDance's TikTok, and Meta.
• Oracle's heavy AI spending resulted in a negative $10 billion free cash flow, causing investor concern about delayed AI investment payoffs.
• Broadcom forecasts strong fiscal first-quarter revenue around $9.4 billion and full fiscal year 2024 revenue around $50 billion.
• Broadcom expects AI semiconductor revenue to double year-over-year to $8.2 billion, with custom chip deals including OpenAI and Google Cloud TPUs for Anthropic.
• Snowflake's stock is up 43.7% this year, outperforming Nvidia, with product revenue increasing 29% to $1.16 billion for fiscal 2026 third quarter.
• Snowflake faces concerns over its high valuation (price-to-sales ratio of 16.9) and $1.3 billion in stock-based compensation.
• BigBear.ai shares fell 1.7% after missing EPS estimates but plans to acquire generative AI platform Ask Sage for $250 million.
• Chinese AI startups MiniMax and Zhipu, backed by Alibaba and Tencent, are reportedly planning Hong Kong IPOs, aiming to rival OpenAI.
• Software company Harness achieved a $5.5 billion valuation after a $200 million Series E funding round led by Goldman Sachs, focusing on AI for software engineering.

Oracle stock falls as cloud sales disappoint and AI spending rises

Oracle's stock dropped after its fiscal second-quarter cloud sales increased 34% to $7.98 billion, which was less than expected. Its infrastructure business grew 68% to $4.08 billion. The company is building many new data centers to support AI work for clients like OpenAI, ByteDance's TikTok, and Meta Platforms. Investors are concerned about the high costs of these AI investments.

Oracle shares drop on high AI costs and slow cloud revenue

Oracle's shares fell over 10% after reporting higher spending on AI data centers and cloud sales that missed estimates. Fiscal second-quarter cloud sales rose 34% to $7.98 billion, and infrastructure revenue grew 68% to $4.08 billion. The company now expects capital expenditures to reach about $50 billion by May 2026, a $15 billion increase from its September forecast. This massive spending has led to a negative $10 billion free cash flow and concerns among investors about the delayed payoff from AI investments.

Oracle stock drops as AI costs grow and cloud sales miss

Oracle's stock fell 11% in early trading after its fiscal second-quarter cloud sales and infrastructure revenue did not meet analyst expectations. Cloud sales increased 34% to $7.98 billion, and infrastructure revenue rose 68% to $4.08 billion. The company plans to spend about $50 billion on capital expenditures by May 2026, a significant increase from its September forecast. This heavy investment in AI data centers, including work for OpenAI, has led to a negative $10 billion free cash flow and concerns among investors about the company's debt.

Broadcom predicts strong revenue from high AI chip demand

Broadcom Inc. expects its quarterly revenue to be higher than Wall Street estimates, thanks to strong demand for its specialized artificial intelligence chips. The company's shares rose 2.8% after this forecast. Broadcom's networking chips are crucial parts of the servers that power AI models, making it a key player in the AI industry. It forecasts fiscal first-quarter revenue around $9.4 billion and full fiscal year 2024 revenue around $50 billion, a significant increase from $35.8 billion in 2023.

Broadcom sees strong growth with new AI chip partnerships

Broadcom Inc. gave a strong revenue forecast for its current fiscal first quarter, expecting sales around $19.1 billion. The company benefits from high demand for its custom chips, which are essential for AI data centers. CEO Hock Tan stated that AI semiconductor revenue is expected to double year-over-year to $8.2 billion. Broadcom has secured deals with major AI providers like OpenAI for custom chip designs and its designs are used in Google Cloud TPUs for Anthropic. Its shares rose about 3% in extended trading, having already increased 75% this year.

BigBear.ai stock falls 1.7 percent after earnings report

BigBear.ai shares fell 1.7% on Tuesday, trading at $5.71. The company reported its quarterly earnings on November 13th, missing analyst estimates with an earnings per share of ($0.11) against an expected ($0.08). However, its revenue of $36.08 million slightly beat the analyst estimate of $35.90 million. Institutional investors like BlackRock Inc. and Geode Capital Management LLC have increased their stakes in the company. Analysts currently rate the stock as a "Hold" with a consensus price target of $7.50.

Chinese AI startups MiniMax and Zhipu plan Hong Kong IPOs

Two Chinese artificial intelligence startups, MiniMax and Zhipu, are reportedly planning initial public offerings in Hong Kong soon. These companies are seen as potential rivals to OpenAI. Both MiniMax and Zhipu receive backing from major tech giants like Alibaba Group Holding Ltd. and Tencent Holdings Ltd. Their plans highlight the strong competition in China's AI sector and the need for funding to grow. Hong Kong's stock market is currently strong, with about $35 billion raised in IPOs in 2025.

Snowflake AI stock outperforms but faces high valuation concerns

Snowflake's stock has soared 43.7% this year, outperforming the S&P 500, Nasdaq-100, and even Nvidia, thanks to its strong operating results. The company offers the Data Cloud, which helps businesses gather data for AI models, and Cortex AI, a platform with tools like Document AI and Snowflake Intelligence. Snowflake reported $1.16 billion in product revenue for its fiscal 2026 third quarter, a 29% increase. However, the company lost $293 million on a GAAP basis and issued $1.3 billion in stock-based compensation, which dilutes shareholder value. Its high valuation, with a price-to-sales ratio of 16.9, raises concerns for future growth in 2026.

Oracle's $50 billion AI plan causes US stock market jitters

US stocks opened mixed after Oracle's earnings report caused market jitters, despite a recent Federal Reserve rate cut. Oracle's stock plunged 15% after the company warned of a massive $15 billion increase in data center spending, pushing total capital expenditures to $50 billion by May 2026. This news raised fears that the costs of the AI boom are growing faster than returns. Other technology stocks like Nvidia, Micron, AMD, and Microsoft also saw declines. Investors are concerned that AI investments might take longer to generate profits than initially expected.

Oracle stock drops as AI costs rise and revenue misses

Oracle's stock fell as much as 15% after its fiscal fourth-quarter AI-related costs for cloud infrastructure and data centers exceeded Wall Street estimates. The company's total revenue of $13.3 billion, up 3% year-over-year, slightly missed the $13.34 billion consensus. CEO Safra Catz noted strong demand for their Gen2 cloud infrastructure and applications, expecting the infrastructure business to grow about 50% in fiscal year 2025. Despite securing large deals with customers like OpenAI, Oracle's guidance for the first quarter of fiscal year 2025 also disappointed investors, with projected revenue growth and earnings per share falling below estimates.

Goldman Sachs invests in AI firm Harness now worth $5.5 billion

Software company Harness achieved a $5.5 billion valuation after its latest Series E funding round, which raised $200 million and was led by Goldman Sachs. Harness aims to use AI and machine learning to improve the "second half" of software engineering, focusing on tasks like testing, deployment, security, and optimization. CEO Josh Bersin stated that delivering software safely and reliably is a key differentiator for engineering teams. This investment comes as many startups are receiving funding for tools that help AI models write and update software.

NVIDIA or BigBear.ai which AI stock has more growth

This article compares the growth potential of NVIDIA and BigBear.ai, both AI stocks. NVIDIA's shares are up 36.8% this year, with strong fiscal third-quarter 2026 revenues of $57 billion, driven by high demand for its AI chips. BigBear.ai shares surged 48.5% this year, despite a 20% decline in third-quarter revenues to $33.1 million. BigBear.ai plans to acquire Ask Sage for $250 million, a generative AI platform for government use, to boost its revenue. While NVIDIA shows strong profitability and growth forecasts, BigBear.ai's lack of consistent profitability and a declining short-term price target suggest NVIDIA may have a bigger upside in 2026.

AI analyst recommends three top ETFs for investment

An AI analyst from TipRanks has identified three Exchange Traded Funds, or ETFs, that are rated "Outperform" and show potential for 10% or more growth. These recommended ETFs include the KraneShares Hang Seng TECH Index ETF, the Global X PureCap MSCI Consumer Staples ETF, and the Dana Unconstrained Equity ETF. Investors can use these insights to power up their ETF investing strategies.

Sources

• Oracle Drops on Disappointing Cloud Sales, More AI Spending
• Oracle Posts Weak Cloud Sales, Raising Fear of Delayed Payoff
• Oracle drops on disappointing cloud sales, more AI spending
• Broadcom forecasts upbeat quarterly revenue on strong AI chip demand
• Broadcom Gives Upbeat Forecast After AI Deals Fuel Growth
• BigBear.ai (NYSE:BBAI) Trading Down 1.7%
• Chinese AI Unicorns MiniMax and Zhepu Said to Target Hong Kong IPOs Soon
• This Artificial Intelligence (AI) Stock Is Crushing the S&P 500, the Nasdaq-100, and Even Nvidia -- But Is It a Buy for 2026?
• US stocks open mixed as Oracle’s $50B AI spending plan sparks market jitters
• Oracle stock sinks as AI costs jump past Wall Street estimates
• Goldman Investment Helps AI Firm Harness Reach $5 Billion Valuation
• NVIDIA or BigBear.ai: Which AI Stock Has Bigger Upside in 2026?
• 3 Best ETFs to Invest In, According to AI Analyst, 12/11/2025