Updates from two major tech companies arrive this week. What it could mean for AI trading

Two tech giants shocked Wall Street with their earnings reports in September. Now they are under pressure to do it again.

Software giant Oracle (ORCL) will report its quarterly results after the market close on Wednesday, followed by semiconductor company Broadcom (AVGO) on Thursday afternoon. Its shares have risen 33% and 75% respectively since the beginning of the year, but shares have mixed in recent months, reflecting concerns that have led to a shift in investor discussion of artificial intelligence.

Wall Street is generally optimistic about the upcoming earnings reports for both Oracle and Broadcom. Analysts expect the two companies, among the largest in the S&P 500, to show signs that demand for artificial intelligence will remain strong next year. But recent research from Goldman Sachs suggests the sector’s stocks may not be pushed higher by industry-wide forces in the coming months.

Oracle in early September replaced Nvidia as the hottest AI play on Wall Street. The stock rose 36% the day after Oracle announced that its cloud computing backlog more than quadrupled to nearly $500 billion. Wall Street hailed the results as evidence of a “truly historic” quarter that underscored “the seismic shift taking place in computing.”

But reports then indicated that nearly all of Oracle’s accretive growth resulted from a multi-year, $300 billion deal with OpenAI, the maker of ChatGPT that is expected to spend more than $100 billion before turning a profit at the end of the decade. This raised concerns that too many of Oracle’s eggs were in one big, risky basket.

Meanwhile, debate has raged on Wall Street over whether cloud providers like Oracle are overspending on infrastructure. Oracle sold $18 billion in bonds in September to help finance its investments in data centers, drawing attention to the fact that its debt load is higher and its credit rating is lower than companies like Microsoft (MSFT), Alphabet (GOOG), Amazon (AMZN), and Meta (META).

Oracle shares weakened amid concerns about customer concentration and the AI ​​bubble. Shares have fallen more than 30% in the past three months, a decline that erased all of the stock’s post-earnings gains in September.

Meanwhile, semiconductor and networking equipment provider Broadcom is among the best-performing technology stocks in recent months, buoyed by optimism that it is shaking off Nvidia’s (NVDA) dominance in the AI ​​chip market.

Broadcom stock jumped nearly 10% after its September earnings report, when executives revealed they had secured a $10 billion order for custom chips from a new customer. As with Oracle, reports in the following days indicated that the undisclosed customer was OpenAI. But unlike Oracle, Wall Street has become more bullish on Broadcom’s AI business — mostly due to the mid-November launch of Google’s Gemini 3, the tech giant’s first AI model trained exclusively using custom chips designed by Broadcom.

Silicon Valley and Wall Street insiders alike have raved about the model, prompting OpenAI to refocus on improving ChatGPT to fend off intense competition. Google has reportedly discussed selling its custom chips to Meta, boosting confidence that Broadcom can take market share from Nvidia.

Broadcom shares are up nearly 20% since Google launched Gemini, outperforming both the S&P 500, which is up 4%, and the Magnificent Seven, which is up 6%.

What this week’s earnings could mean for AI trading

In a recent note, Deutsche Bank analysts analyzed the assumptions underpinning Wall Street’s outlook for Oracle’s business and stock. “The company gets little, if any, credit for its work with OpenAI at the current stock price of roughly $200,” they wrote. Analysts at Citi expect Oracle to report its backlog grew by $100 billion in the fourth quarter, providing “further evidence that demand for AI infrastructure is broad.”

Bank of America earlier this month raised its price target for Broadcom stock, citing improving prospects for Google’s custom chips. HSBC bank analyst Frank Li predicted that Broadcom’s results on Thursday would meet expectations before demand for custom chips and networking accelerates corporate AI business early next year.

However, it may no longer be the case that the rising tide of AI lifts all boats. According to a Goldman Sachs report, the correlation among AI Hyperscaler stocks was about 20% in mid-November, down from 80% in June.

Update — December 9, 2025: This article was updated after markets closed on Tuesday with the latest stock performance data.