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3d ago

Oracle’s AI Spending Surprise Roils Tech as Broadcom Slumps

Investors are reassessing the payoff and funding of large AI buildouts after Oracle lifted capital outlays and cash flow concerns resurfaced.

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Los corredores Alex Weitzman (izquierda) y Meric Greenbaum trabajan en el piso de la Bolsa de Valores el jueves 11 de diciembre de 2025, en Nueva York. (AP Foto/Richard Drew)
El corredor William Lawrence trabaja en la Bolsa de Valores el jueves 11 de diciembre de 2025, en Nueva York. (AP Foto/Richard Drew)

Overview

  • Oracle reported $16.06 billion in quarterly revenue versus a $16.21 billion consensus and guided sharply higher AI-related capex to about $50 billion for 2025, up from roughly $35 billion projected in September.
  • Oracle shares fell about 11% on Thursday and slid another roughly 4% on Friday, erasing tens of billions in market value as brokers flagged negative free cash flow near $10 billion and higher indebtedness.
  • Broadcom dropped 11.4% on Friday after outlook details disappointed despite topping revenue estimates, with management signaling a 100-basis-point gross margin dip and citing a $73 billion AI order book over six quarters.
  • The tech selloff pulled major indexes lower on Friday, with the S&P 500 down 1.07%, the Nasdaq off 1.69% and the Dow down 0.51%, even as the Dow finished the week higher on rotation into non-tech shares.
  • Losses spread across AI bellwethers and suppliers, including declines in Nvidia, AMD, Micron and CoreWeave, and extended to Asia where TSMC fell, as investors questioned the timeline and profitability of massive AI infrastructure spending following recent Fed rate cuts and shifting bond yields.