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>. Asia-Pacific markets traded lower Monday<\/a>. South Korea’s Kospi<\/a> retreated roughly 1.5% as of 2:45 p.m. Singapore time (1:45 a.m. ET), leading losses in the region.<\/p>\n China’s economic slowdown deepens. <\/strong>Even though the country’s retail sales and industrial production grew year on year in November, their increase missed forecasts<\/a> and slowed from the previous month. Investment in fixed assets in the January-to-November period contracted from a year earlier.<\/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 Hong Kong court finds Jimmy Lai guilty. <\/strong>The 78-year-old pro-democracy activist and media baron\u00a0was ruled guilty of sedition and collusion<\/a> with foreign countries by a Hong Kong court on Monday. The results might unsettle foreign investors, analysts say. <\/p>\n [PRO] China’s food security strategy. <\/strong>The spat 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