Broadcom shares fall more than 5% after weak revenue forecasts.

ProShares' stock fell during Thursday's trading after the company released weaker-than-expected revenue forecasts, despite strong sales expectations for its AI chips. On Wednesday, ProShares projected robust sales of AI chips over the next two years, providing fresh evidence that the appetite of major tech firms for investing in AI infrastructure remains strong, even as investors scrutinize the returns from the sector's massive spending. In terms of trading, ProShares' shares dropped 5.26%, and although the stock has risen about 6% since the beginning of the year, it still lags noticeably behind its peers and the broader semiconductor index amid ongoing concerns about AI spending and intensified competition, including the recent custom chip deal between Marvell and Google. ProShares, whose customers include Meta Platforms, Google (a subsidiary of Alphabet), and OpenAI, said it now expects AI chip revenues to reach roughly $115 billion in the fiscal year ending October 2027, up from a prior estimate of over $100 billion. The company expects those revenues to double to about $230 billion in fiscal 2028. These forecasts highlight the expanding scope of AI spending beyond high‑cost Nvidia processors, benefiting suppliers like ProShares that provide custom chips, as well as the networking components that connect AI systems. With major tech firms racing to build AI infrastructure, ProShares' AI chip orders have exceeded $30 billion in the last quarter alone. CEO Hock Tan told analysts that the company has secured sufficient supply to support its higher next‑year outlook, as customer demand continues to rise. He added that the company has a clear vision for additional AI infrastructure deployments through 2028, including more than 10 GW for Anthropic, over 5 GW for OpenAI, and 3 GW for Meta. Patrick Morhad, CEO of Mor Insights and Strategy, said, “This is a committed capacity, not just ambition, and it closes most of the gap the market was looking for.” ProShares expects fourth‑quarter revenues to be about $34.8 billion, below the analysts' average estimate of $35.03 billion, according to data compiled by LSEG. AI chip sales more than tripled to $16.7 billion in the third quarter, driving ProShares' total revenue to $29.59 billion, surpassing analysts' estimate of $29.36 billion. Adjusted earnings were $3.32 per share, compared with estimates of $3.24 per share.

Major Wall Street indices opened higher on Thursday after Federal Reserve Chair Christopher Waller said…