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Pre-Market Movers: Broadcom Slides Despite Record AI Revenue as Margin Concerns Overshadow Earnings Beat

MarketDash Editorial Team
39 minutes ago
Broadcom tumbled over 5% in pre-market trading despite posting record AI revenue and beating earnings expectations, as investors fixated on disappointing margin guidance and higher tax rates for 2026. Several other stocks also moved lower before the opening bell.

U.S. stock futures showed mixed sentiment Friday morning, with Dow futures climbing around 100 points while several individual stocks struggled in pre-market action.

The biggest headline belonged to Broadcom Inc. (AVGO), which somehow managed to turn good news into bad. The semiconductor giant delivered a fourth-quarter earnings beat and posted record artificial intelligence revenue, but investors weren't having it. Despite AI sales surging 74%, the market zeroed in on what Broadcom said about the future: shrinking gross margins and a sharply higher tax rate for fiscal 2026. Sometimes it's not about where you've been, but where you're going.

Broadcom shares dropped 5% to $386.28 in pre-market trading, proving once again that guidance can matter more than results.

Other Pre-Market Decliners

Broadcom wasn't alone in the red. Here's who else was moving lower before the opening bell:

Beasley Broadcast Group Inc. (BBGI) continued its rough stretch, declining 12.2% to $7.76 after already tumbling 47% on Thursday. That's the kind of two-day performance that makes you question everything.

CapsoVision, Inc. (CV) fell 9% to $13.13, giving back some of Thursday's 22% gain. What goes up must sometimes come down, apparently.

Fermi Inc. (FRMI) dipped 6.6% to $14.25 without any specific catalyst disclosed.

LightPath Technologies Inc. (LPTH) dropped 6.1% to $8.57 after announcing a proposed public offering of common stock. Dilution concerns tend to have that effect.

Netskope, Inc. (NTSK) fell 5.7% to $22.17 following third-quarter results. The cybersecurity company also issued guidance projecting a fiscal 2025 adjusted loss of 51 to 53 cents per share, with revenue expected between $701 million and $703 million.

Sandisk Corporation (SNDK) declined 3.7% to $232.75 in pre-market action.

Vale SA (VALE) fell 3.6% to $12.81, though it's worth noting that RBC Capital analyst Marina Calero recently upgraded the stock from Sector Perform to Outperform and raised the price target from $11 to $14.20.

Back to News

Pre-Market Movers: Broadcom Slides Despite Record AI Revenue as Margin Concerns Overshadow Earnings Beat

MarketDash Editorial Team
39 minutes ago
Broadcom tumbled over 5% in pre-market trading despite posting record AI revenue and beating earnings expectations, as investors fixated on disappointing margin guidance and higher tax rates for 2026. Several other stocks also moved lower before the opening bell.

U.S. stock futures showed mixed sentiment Friday morning, with Dow futures climbing around 100 points while several individual stocks struggled in pre-market action.

The biggest headline belonged to Broadcom Inc. (AVGO), which somehow managed to turn good news into bad. The semiconductor giant delivered a fourth-quarter earnings beat and posted record artificial intelligence revenue, but investors weren't having it. Despite AI sales surging 74%, the market zeroed in on what Broadcom said about the future: shrinking gross margins and a sharply higher tax rate for fiscal 2026. Sometimes it's not about where you've been, but where you're going.

Broadcom shares dropped 5% to $386.28 in pre-market trading, proving once again that guidance can matter more than results.

Other Pre-Market Decliners

Broadcom wasn't alone in the red. Here's who else was moving lower before the opening bell:

Beasley Broadcast Group Inc. (BBGI) continued its rough stretch, declining 12.2% to $7.76 after already tumbling 47% on Thursday. That's the kind of two-day performance that makes you question everything.

CapsoVision, Inc. (CV) fell 9% to $13.13, giving back some of Thursday's 22% gain. What goes up must sometimes come down, apparently.

Fermi Inc. (FRMI) dipped 6.6% to $14.25 without any specific catalyst disclosed.

LightPath Technologies Inc. (LPTH) dropped 6.1% to $8.57 after announcing a proposed public offering of common stock. Dilution concerns tend to have that effect.

Netskope, Inc. (NTSK) fell 5.7% to $22.17 following third-quarter results. The cybersecurity company also issued guidance projecting a fiscal 2025 adjusted loss of 51 to 53 cents per share, with revenue expected between $701 million and $703 million.

Sandisk Corporation (SNDK) declined 3.7% to $232.75 in pre-market action.

Vale SA (VALE) fell 3.6% to $12.81, though it's worth noting that RBC Capital analyst Marina Calero recently upgraded the stock from Sector Perform to Outperform and raised the price target from $11 to $14.20.