The Rundown — Broadcom Delivers Weak AI Sales Outlook, Lululemon CEO to Resign

Hosted by Zaid Admani
Date: December 12, 2025

Episode Overview

Today's episode dives into the stock market's latest moves, focusing on Broadcom’s record-but-disappointing earnings and Lululemon’s surprising market rally after CEO news. Host Zaid Admani also covers the broader market’s shift away from tech, key economic data on the horizon, and noteworthy rallies and crashes among individual stocks. The episode wraps up with a segment on Google's latest AI-powered web browser and Zaid’s skepticism about its practical use.

Market Recap & Rotation Out of Tech

[00:16 – 02:33]

• The S&P 500 rose 0.2%, reaching record highs for the first time since October, joined by the Russell 2000 and the Dow Jones.
  • “Still don’t care about the Dow though. But I do really care about the Nasdaq and unfortunately the tech-heavy index was in the red yesterday…” — Zaid [00:29]
• The Nasdaq fell 0.3%, dragged by Oracle shares plummeting nearly 11% after concerning earnings and rising debt worries.
• Host references a market trend: Rally is broadening beyond big tech as more S&P 500 stocks participate—a positive sign for stability.
  • “The equal weight S&P is up 3.2% compared to just 1.3% for the traditional market cap weighted S&P index. So that tells you that more stocks are starting to participate in this overall rally.” — Zaid [01:36]
• Upcoming economic data: November jobs report and CPI inflation report next week, first major updates post-government shutdown—expected to offer crucial signals on the economy and labor market.

Broadcom’s Record Quarter & The “AI Disappointment”

[02:36 – 04:38]

• Broadcom reported Q3 revenue up 28% to a record $18 billion, fueled by a 74% jump in AI chip sales—its fastest-growing segment.
  • “Making custom AI chips for companies like Google, Meta, Anthropic, and even OpenAI.” — Zaid [03:07]
• Company expects AI revenue to double year over year in Q1 2026 ($8.2B), with a $73B backlog.
• Despite strong headline numbers, Broadcom stock plunged over 7%.
  • The issue: Company withheld a full-year AI forecast, calling it a “moving target,” which spooked investors.
  • “That’s not something that investors want to hear.” — Zaid [03:37]
• CEO noted AI chips have lower margins than traditional products; non-AI revenue guidance is flat.
• Echoes recent Nvidia performance, signaling “strong beats” in the AI sector are no longer enough to impress investors.
  • “We’ve definitely hit a part of the AI cycle where even a strong earnings beat isn’t enough…” — Zaid [04:18]

Lululemon CEO Departs – Stock Surges

[04:39 – 06:10]

• Lululemon’s CEO Calvin McDonald will step down at the end of January. Stock soared over 10% following the news, reflecting pent-up hopes for a turnaround.
  • “Can’t be a great feeling for the outgoing CEO when the stock rallies double digits after announcing that you’re stepping down…” — Zaid [04:51]
• Context: Lululemon shares have halved over the past year amid stagnating US growth and new competition (Alo, Vuori).
  • “I see a lot of yoga moms rocking Alo these days instead of Lulu. At least, that’s what my wife tells me.” — Zaid [05:10]
• Company founder and major shareholder Chip Wilson publicly criticized management, pushing for a shakeup.
• Latest quarter beat expectations but warned on weak US sales and light Q4 guidance.
• Company has started the search for a new CEO; CFO and CCO will act as interim co-CEOs.

Market Movers: Cannabis Stocks & Fermi Crash

[06:11 – 07:27]

• Cannabis Stocks Rip:

  • News of the Trump administration planning to reclassify marijuana as a Schedule 3 drug (down from Schedule 1) triggered huge rallies:
    • Tilray up 30%, Canopy Growth up 20%.
    • “You couldn’t tell that from walking around New York City, I’ll tell you that much…” — Zaid [06:37]
  • Reclassification would mean less restrictive regulations and improved banking/tax treatment, but Zaid notes the industry’s long-term underperformance:
    • “Even after today’s pop, most cannabis stocks are still way down from their highs, no pun intended.” — Zaid [07:03]

• Fermi Plummets:

  • Fermi shares dropped over 40% after losing a $150M deal—their first major customer for the Matador power grid project, a next-gen grid targeting AI-driven data centers.
  • “Losing your anchor tenant before the project even gets off the ground is as bad as it gets…” — Zaid [07:17]

Google’s “Disco” AI-Powered Web Browser — Host’s View

[07:28 – 08:52]

• Google is developing “Disco,” an AI-first browser built around Gemini, with “Gen Tabs”—AI-generated workspaces based on browsing activity (e.g., shopping, article summaries, timelines).
  • “It all sounds really interesting, but I don’t think I want this. This might be a Boomer take, but I think the browser is fine as it is.” — Zaid [08:11]
• Zaid jokes about RAM usage and questions the need for always-on AI in browsers.
• He notes that even Google isn’t positioning Disco as a Chrome replacement yet—currently, it’s in limited testing.
• Trend noted: Major AI companies are rapidly rolling out browser products (Perplexity, OpenAI, now Google).
• Speculates on hardware implications: “I think I have to invest in more computer memory companies because the need for RAM is going to explode as AI infiltrates everything.” — Zaid [08:40]
• Invites listener feedback: “Would you guys want an AI-powered browser as your daily driver? And if so, how much RAM do you have on your computer?” — Zaid [08:48]

Notable Quotes

• “The equal weight S&P is up 3.2% compared to just 1.3% for the traditional market cap weighted S&P index. So that tells you that more stocks are starting to participate in this overall rally.” — Zaid [01:36]
• “We’ve definitely hit a part of the AI cycle where even a strong earnings beat isn’t enough to push the stock higher.” — Zaid [04:18]
• “Can’t be a great feeling for the outgoing CEO when the stock rallies double digits after announcing that you’re stepping down…” — Zaid [04:51]
• “You couldn’t tell that from walking around New York City, I’ll tell you that much...” (on federal marijuana laws) — Zaid [06:37]
• “It all sounds really interesting, but I don’t think I want this… I think the browser is fine as it is.” — Zaid [08:11]

Key Timestamps

| Timestamp | Segment | Summary | |-----------|---------|---------| | 00:16-02:33 | Market Recap | S&P 500 hits records, equal-weight participation, upcoming jobs/CPI data | | 02:36-04:38 | Broadcom Earnings | Big AI chip sales, cautious 2026 outlook, margin & growth worries | | 04:39-06:10 | Lululemon CEO News | CEO exit, stock surges, founder’s critique, future strategy | | 06:11-07:27 | Stock Movers | Cannabis stocks jump on reschedule news, Fermi plummets on deal loss | | 07:28-08:52 | Google Disco Browser | Host’s AI browser skepticism, features, tech/hardware speculation |

Overall Tone

Zaid maintains a fast-paced, conversational, and lightly humorous style, balancing market analysis with approachable explanations and candid personal views.

Conclusion

This compact episode delivers insightful market trends, sharp company analysis, and a thoughtful take on tech innovations, making it valuable for investors seeking context and clarity amid busy news cycles.