Broadcom CEO Hock Tan.

Lucas Jackson | Reuters

Broadcom’s quarterly results and guidance sailed past Wall Street estimates. It didn’t matter.

The chipmaker’s shares plummeted 11% on Friday, their worst day since January, as investors ran for the exits on the artificial intelligence trade. Oracle dropped 4.5% a day after plunging 10% following its earnings report.

Nvidia and Advanced Micro Devices, the two leading makers of graphics processing units for AI workloads, slid about 3% and 5%, respectively.

AI has been the driver for the stock market and the broader economy this year, so any negative sentiment has potentially far-reaching consequences. The Nasdaq on Friday fell about 1.69%, and the S&P 500 declined by 1%.

The companies getting hit the hardest are the ones most closely tied to AI infrastructure, which has been booming as hyperscalers build out their data centers to try and meet what they describe as insatiable demand for compute-intensive AI services. Broadcom makes custom chips for many of the the largest tech companies, and saw its market cap about double each of the past two years before rallying again in 2025.

“This stock is up 75-80% year to date. You’re seeing a little bit of a pullback,” Vijay Rakesh, an analyst at Mizuho, told CNBC’s “Squawk on the Street” on Friday. “We would be buyers on this pullback.”

Mizuho raised its price target on the stock to $450 from $435. It closed on Friday just below $360.

“This is still where the growth is,” Rakesh said. “They are still the big supplier to Google on their entire hardware stack, to Meta, to Anthropic and even OpenAI coming down the road.”

Broadcom reported revenue growth of 28% during the quarter, largely due to a 74% increase in AI chip sales, to a total of $18.02 billion, topping the $17.49 billion average analyst estimate, according to LSEG. Adjusted earnings per share of $1.95 adjusted topped the $1.86 average estimate.

CEO Hock Tan said Broadcom expects AI chip sales this quarter to double from a year earlier to $8.2 billion, both from custom AI chips as well as semiconductors for AI networking.

One concern among investors is that margins are coming down, at least in the short term, due to higher up-front costs. CFO Kirsten Spears said on the earnings call that “gross margins will be lower” for some of Broadcom’s AI chip systems because the company will have to buy more parts to produce the server racks.

Broadcom also said it had a $73 billion backlog of AI orders over the next 18 months. Part of that is from $21 billion of orders from Anthropic, which the company revealed as a key customer on Thursday.

While OpenAI has been a highly touted customer following a multibillion-dollar agreement announced in October, Tan doused some hope for the deal, telling investors late Thursday that, “We do not expect much in ’26.”

Bernstein analyst Stacy Rasgon said in a note on Friday that “AI angst” was driving Broadcom’s shares lower.

“Frankly we aren’t sure what else one could desire as the company’s AI story continues to not only overdeliver but is doing it at an accelerating rate,” Rasgon, who recommends buying the stock and raised his price target, wrote in the note.

Oracle has been facing more extreme skepticism. The stock is now down more than 40% from its record reached in September. The company beat on earnings but missed on revenue in its report on Wednesday, and investors were disappointed they didn’t get more detail on how Oracle will finance its massive buildout that so far has required mounds of debt.

CoreWeave, which is investing in data centers to offer cloud-based AI services, sank 10% on Friday and has lost more than half its value since peaking in June.

WATCH: Mizuho raises price target on Broadcom

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An employee walks past a quilt displaying Etsy Inc. signage at the company’s headquarters in the Brooklyn.

Victor J. Blue/Bloomberg via Getty Images

Etsy missed on revenue and gross merchandise sales for the fourth quarter, with the company citing “significant headwinds,” including a pullback in consumer spending. The stock closed down 10% on Wednesday.

Here’s how the company did:

• Earnings: $1.03 per share adjusted vs. 93 cents per share expected by LSEG
• Revenue: $852.2 million vs. $862.8 million expected by LSEG

Gross merchandise sales, or the total volume of goods sold on the platform, came in at $3.74 billion, a decline of 6.8% year over year. Wall Street had forecast fourth-quarter GMS of $3.8 billion, according to analysts surveyed by FactSet.

The fourth quarter includes the holiday shopping period. Etsy said the GMS slump was a result of “pressure on consumer discretionary product spending,” tough comparisons due to the shortened holiday shopping season and “category mix,” as well as a competitive retail and marketing environment.

Etsy operates an online marketplace that connects buyers and sellers with mostly artisan and handcrafted goods. The company has been working to strengthen its image as a destination for unique gifts and products as it combats a fiercely competitive e-commerce market dominated by Amazon and, more recently, Chinese online retailers Temu, Shein and TikTok Shop.

Online holiday spending in November and December rose nearly 9% to $241.1 billion, topping analysts’ expectations of $240.8 billion, according to Adobe Analytics. Inflation-weary shoppers opened their wallets in search of deep discounts, but some discretionary categories like furniture, jewelry and accessories were expected to see some softness compared with toys and home decor products.

Revenue in the fourth quarter increased 1.2% to $852.2 million, compared to $842.3 million a year ago.

Net income for the fourth quarter came in at $129.9 million, or $1.17 per share, from $83.2 million, or 70 cents per share, a year ago.

Etsy also gave a downbeat outlook for the current quarter, saying it expects GMS will fall at a rate similar to the year-over-year performance it reported in the fourth quarter.

Etsy CEO Josh Silverman said on a call with investors that the company is taking a short-term hit to its GMS as it works to overhaul the site. The company has been focused less on “near-term conversion driving” in favor of improving the quality of goods and shopping experience on its site, Silverman said.

“While this resulted in real opportunity cost to GMS to the tune of at least a few hundred million dollars last year, we believe it will be well worth it as we’re now building on this improved foundation for 2025 and beyond,” Silverman told investors.

In recent years, Etsy has been working to counter the spread of mass-produced, generic goods from resellers on its platform to get back to its roots and keep shoppers returning to the platform. It’s also launched a gifting feature to provide personalized recommendations to shoppers, along with a loyalty program.

“So while others focus on cheap and fast, we’re focusing on creativity, self-expression, and elevating artisanal items,” Silverman said. “And while others rely on mass production and complex supply chains, we are empowering our nimble and unique seller base to thrive.”

The e-commerce industry is still absorbing the impact of President Donald Trump’s recent tariff announcements, which target a popular tax loophole used by some online retailers. Trump suspended, then reinstated, the de minimis exemption, which allows exporters to ship packages worth less than $800 into the U.S. duty-free.

The loophole is expected to be shut again once the Commerce Department and customs officials put systems in place to process and collect tariffs on the millions of de minimis packages that flow into the U.S. daily. A significant portion of those packages originate from China.

Silverman said he expects Etsy to benefit from the tariffs and de minimis restrictions, unless the Trump administration targets European countries, in which case that “could create more friction on our buyers.”

“Etsy has much less dependence on products coming in from China, vastly less dependence,” Silverman said. “So I think to the extent that we see tariffs that are very focused on China … I think at least in the near term, Etsy is a net beneficiary.”

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