Shares in AI bellwether Broadcom fell almost 5% in pre-market trading on Friday, after the company forecast first quarter revenue ahead of Wall Street expectations but warned that margins would come under pressure from a higher mix of AI-related sales.
The company has moved aggressively into the AI chip market, prompting investor questions over the profitability and capital intensity of the shift. Broadcom has a $73bn (£55bn) backlog that it expects to ship over the next 18 months, chief executive Hock Tan told analysts on a post earnings call, though an executive cautioned that profit margins could decline.
The company reported fourth quarter earnings and revenue that beat forecasts, alongside a robust outlook for the current quarter supported by strong demand for artificial intelligence. Broadcom said it expects fiscal first quarter revenue of about $19.1bn, implying 28% year on year growth and exceeding the $18.3bn average analyst estimate, according to LSEG.
Tan said in a statement that AI chip sales this quarter are set to double from a year earlier to $8.2bn, driven by custom AI processors and semiconductors used in AI networking.
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Net income rose 97% to $8.51bn, or $1.74 a share, compared with $4.32bn, or 90 cents, in the same period last year. The company declared a quarterly dividend of 65 cents a share, up from 59 cents, payable later this month.
Shares in the athleisure company Lululemon are up by 10% ahead of the US opening bell following the announcement that CEO Calvin McDonald will step down at the end of January after more than a year of lacklustre performance.
The company’s board said it is working with a “leading executive search firm” to identify McDonald’s successor. McDonald will remain with the company as a senior advisor until 31 March to ensure a smooth transition.
“The timing is right for a change,” McDonald said during a call with analysts. “I’ve described being CEO of Lululemon as my dream job. It truly has lived up to every expectation and given me the opportunity of a lifetime.”
Along with the leadership shake-up, Lululemon reported better-than-expected third-quarter results and announced a $1bn increase in its stock buyback programme. The company saw a 7% year-on-year rise in revenue to $2.6bn for the three months ending November 2. While international sales surged by 33%, US sales fell 2%.
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During McDonald’s transition, chief financial officer Meghan Frank and chief commercial officer André Maestrini will serve as interim co-CEOs. Marti Morfitt, Lululemon’s chair, will take on an “expanded role” as executive chair.
Chip Wilson, Lululemon’s founder, sparked controversy two months ago when he said the company had suffered a “loss of cool”, attributing it to leadership that, in his view, could “speak Wall Street” but lacked the product-driven vision to attract and motivate creative talent.
Electric vehicle maker Rivian unveiled ambitious plans to develop new AI technology, custom chips and robotaxi capabilities, but investor enthusiasm appeared muted. Shares crept up by just 0.5% in pre-market trading, following a 6% drop in the previous session.
Rivian CEO RJ Scaringe and other executives revealed that the company has developed a custom chip, car computer and new artificial intelligence models designed to enable autonomous features in its upcoming vehicles.
The automaker also outlined plans to launch its Autonomy+ subscription service in the US in early 2026. This service will offer “continuously expanding capabilities” to owners of its second-generation vehicles, powered by Rivian’s proprietary Autonomy Processors and Autonomy Computers.
In addition, Rivian has introduced the Rivian Assistant, an AI-powered voice interface set to debut in early 2026. This next-generation technology will be available in both first- and second-generation vehicles, marking a significant step forward in the company’s integration of AI and automation features.
Despite these announcements, investor sentiment appeared cautious, with the market reacting lukewarmly to Rivian’s vision for the future.
Rivian is under pressure to prove its future growth potential to investors, particularly as the company faces slowing sales of battery electric vehicles in the US and increased competition from Chinese EV makers internationally.
Shares in Robinhood hovered just above the flatline on Friday after the company closed 9% lower on Thursday, following the release of weak operating data for November.
The report highlighted declines in both funded customers and trading volumes, raising concerns over the company’s growth trajectory.
Trading volumes for equities fell by 37% compared to the previous month, while options and crypto trading saw declines of 28% and 12%, respectively. The number of funded customers also fell, partly due to the removal of around 280,000 low-balance accounts.
Adding to the company’s troubles, Robinhood recently faced regulatory scrutiny, as Connecticut’s Department of Consumer Protection issued a cease-and-desist order, alleging the company was conducting unlicensed online gambling operations.
In the wake of these developments, analysts at Bank of America Securities and Cantor Fitzgerald lowered their price targets on the stock.
Shares in Card Factory plummeted by more than 25% in London after the company issued a profit warning, citing weak high street footfall and challenging trading conditions as it entered the crucial festive period.
The retailer said UK store sales had been “lower than previous expectations”, and it now expects an adjusted pre-tax profit for the year in the range of £55m-£60m, unless trading improves significantly. This marks a significant downgrade from its prior forecast of around £70m.
Card Factory’s stock had seen gains since April, driven by resilient trading and progress on plans to improve its performance. However, the company said on Friday that recent trading had been hampered by “pressures facing the UK consumer”. It added: “It is an inescapable fact that these pressures have impacted consumer confidence and shopping behaviour, contributing to soft high street footfall.”
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Despite the profit setback, Card Factory highlighted that its long-term strategy remains on track. The company is progressing with its productivity and efficiency programme, aimed at offsetting “ongoing high inflation”. It also noted that its businesses in the Republic of Ireland and North America are performing in line with expectations.
The integration of the Funky Pigeon online card business, acquired from WH Smith (SMWH.L) in July, is also “on track”.
The retailer also said that its share buyback programme will continue. The board expects to declare a progressive full-year dividend, in line with its capital allocation policy.
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