Signage at the Broadcom Inc. headquarters in San Jose, California, U.S., on Monday, June 2, 2025. <\/p>\n
David Paul Morris | Bloomberg | Getty Images<\/p>\n
The sell-off in artificial intelligence stocks continued unabated Friday stateside. Broadcom<\/a> shares tumbled more than 11%<\/a> as investors grew concerned over lower margins and uncertain deals. Names such as Nvidia<\/a>, Advanced Micro Devices<\/a> and Oracle<\/a> fell in sympathy, which caused major U.S. indexes to close lower.<\/p>\n It was a motif patterning the week. Even though the Dow Jones Industrial Average rose 1.1% week on week on the back of outperformance by financial stocks, tech names dragged down the S&P 500<\/a> and the Nasdaq Composite<\/a>, which fell 0.6% and 1.6% respectively for the week.<\/p>\n That said, investors could have just been jittery amid the narrative of an apparent AI bubble,<\/a> and were spooked by any sign of bad news. After all, Broadcom’s earnings \u2014 as well as its guidance for the current quarter \u2014 breezed past expectations<\/a>.<\/p>\n “Frankly we aren’t sure what else one could desire as the company’s AI story continues to not only overdeliver but is doing it at an accelerating rate,” Bernstein analyst Stacy Rasgon, who has a “buy” rating on Broadcom, wrote in a Friday note.<\/p>\n Future prospects also look rosy, according to UBS. “We expect high profitability and the accelerating impact of the AI, power and resources, and longevity themes to drive 2026 performance,” said strategist Sagar Khandelwal.<\/p>\n But in the near term, investors may still be flighty, unless something concretely reassuring, such as Oracle achieving positive cash flow, reassures them the snapping sound is just a twig in the forest.<\/p>\n What you need to know today<\/p>\n U.S. stocks dragged down by AI names. <\/strong>Major indexes fell Friday<\/a>, a day after they hit record highs<\/a>. <\/strong>The pan-European Stoxx 600 retreated almost 0.5%.<\/a> Separately, the U.K. economy unexpectedly shrank 0.1%<\/a> in the three months to October. <\/p>\n Oracle will finish data centers on time. <\/strong>The company issued its response to a Bloomberg report<\/a>, which cited unnamed people, that Oracle will complete data centers for OpenAI in 2028 rather than 2027. “There have been no delays<\/a>,” Oracle said.<\/p>\n Coinbase to have an in-house prediction market. <\/strong>It will be powered be Kalshi, a source close to the matter told CNBC, and is a play to expand asset classes<\/a> available on the cryptocurrency exchange. <\/p>\n The end of the ‘Berkshire way’?<\/strong> Several aspects of Berkshire Hathaway’s leadership transition are signaling that the conglomerate is drifting away from the famously decentralized “Berkshire way,”<\/a> CNBC’s Alex Crippen writes.<\/p>\n [PRO] China’s food security strategy. <\/strong>The spate between Beijing and Washington over soybean purchases has highlighted the evolution of China’s domestic agriculture industry. Goldman Sachs thinks this is the best way to play the sector<\/a>.<\/p>\n And finally…<\/p>\n A bear statue stands outside the Frankfurt Stock Exchange, operated by Deutsche Boerse AG, in Frankfurt, Germany, on Friday, March 13, 2020. Top European CEOs are fearing a euro zone recession as a confluence of economic shocks continues to threaten the outlook for the bloc.<\/p>\n Alex Kraus | Bloomberg | Getty Images<\/p>\n Global week ahead: Europe under fire<\/strong><\/a> <\/strong><\/p>\n U.S. President Donald Trump’s\u00a0verdict on Europe<\/a>: a “decaying” group of nations led by “weak” people. His criticism in\u00a0a recent Politico interview<\/a>\u00a0adds to a tough period for the bloc, with challenges on multiple fronts testing European leaders in the final weeks of the year.<\/p>\n This week looks set to be critical, with a high-stakes summit in Brussels and the European Central Bank’s final policy meeting of the year. Key topics for this week include defrosting frozen Russian assets for Ukraine aid; EU vs. U.S. in trade and tech, and updated economic figures at the ECB meeting.<\/p>\n \u2014 <\/strong>Leonie Kidd<\/p>\n","protected":false},"excerpt":{"rendered":"Signage at the Broadcom Inc. headquarters in San Jose, California, U.S., on Monday, June 2, 2025. 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