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Upside Driven by AI 

Broadcom (AVGO) pulled back on Friday despite the company reporting better-than-expected Q4 results and raising its quarterly dividend 10%. KeyBanc analyst John Vinh raised the firm's price target on Overweight-rated Broadcom to $500 from $460 following the company's strong quarterly results.

Upside was driven by AI, as Q4 AI revenues were $6.5 billion, while Q1 AI revenues are expected to double year-over-year to $8.2 billion. Further, Broadcom received an additional $11 billion order from Anthropic to ship in late 2026 on top of the $10 billion initial order. KeyBanc was encouraged by the results and raised estimates.

Executive Order 

President Trump signed an executive order late on Thursday seeking to limit the ability of states to regulate AI while attempting to override certain existing state laws. The order aims "to sustain and enhance the United States' global AI dominance through a minimally burdensome national policy framework for AI," according to a White House post on its website.

Increasing Output 

Nvidia (NVDA) has started to consider expanding production of its H200 AI chips after Chinese demand quickly surpassed current capacity, Reuters reported. According to sources, the surge in interest followed the U.S. decision to permit H200 exports to China with a 25% fee, prompting Nvidia to evaluate adding new output to meet orders.

Delusional AI Outputs 

A bipartisan group of state attorneys recently warned 13 tech companies, including Microsoft (MSFT), Meta (META), Google (GOOGL), and Apple (AAPL), that their chatbots may violate state laws by producing "delusional outputs" that could encourage users' false beliefs, Reuters' Courtney Rozen reported. The letter argued that such behaviors pose mental-health risks for both adults and children.

GPT-5.2

Jefferies wrote that the firm was "bullish" on the release of OpenAI's GPT-5.2 earlier in the week, as it delivered a bigger-than-expected leap over GPT-5.1 while easing concerns it was falling behind Google's Gemini. The company's strong gains in enterprise tasks and coding, along with its "best in class CRO hire", reinforced the firm's conviction regarding OpenAI's FY26 enterprise push, the analyst told investors in a research note.

Jefferies further noted that in AI, model gains can be felt quicker than any prior tech shift, helping drive accelerated adoption, and it saw potential upside for Microsoft as a 27% owner of OpenAI, as well as Oracle (ORCL) and CoreWeave (CRWV), given their high OpenAI exposure.

Data Center Power Problems 

Nvidia is planning to host a private summit next week with startups focused on solving data center power problems that could hold up the development of artificial intelligence, according to several people who were invited, The Information's Anissa Gardizy reported. Executives from power and electrical engineering startups are expected to attend the summit, including companies in which Nvidia has taken equity stakes, the author noted.

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