Broadcom vs. Oracle: AI Stock Showdown After Earnings Surge

Broadcom (AVGO) and Oracle (ORCL) delivered staggering earnings performances, with Oracle's single-day surge ranking among its most dramatic in decades. The chip and infrastructure-software giant Broadcom continues capitalizing on custom AI accelerators and high-end networking, while Oracle stunned markets with a leap in AI-driven cloud contracts.

Broadcom's fiscal Q3 revenue hit $16 billion, up 22% YoY, with AI semiconductor revenue soaring 63% to $5.2 billion. The company projects $6.2 billion in AI chip sales for Q4. Oracle's explosive cloud backlog growth signals intensifying enterprise demand for AI infrastructure.

The battle for AI supremacy now hinges on execution. Broadcom commands premium valuation with 67% EBITDA margins and $7 billion quarterly free cash flow. Oracle's surprise cloud acceleration suggests untapped potential, but conversion of bookings to revenue remains unproven.