Home / Business and Economy / Tech Tumbles: Broadcom Plunge, Oracle Woes Hit Markets
Tech Tumbles: Broadcom Plunge, Oracle Woes Hit Markets
14 Dec
Summary
- Broadcom's stock dropped 11.5% on misinterpreted earnings call remarks.
- Oracle saw nearly 11% stock decline due to sales miss and guidance.
- Nvidia secured approval to ship H200 chips to China, impacting AI trade.
Last week saw the S&P 500 finish lower, reversing recent gains as tech stocks faced a significant downturn. Broadcom's shares plummeted 11.5% on Friday after its quarterly report, overshadowing positive results with remarks that fueled AI stock valuation concerns. Similarly, Oracle experienced a nearly 11% drop following a sales miss and reduced guidance, compounded by reports of delayed data center completions for OpenAI.
Despite the tech sell-off, the Dow Jones Industrial Average closed the week higher, marking its third consecutive weekly gain. This divergence was driven by a rotation out of communications services and information technology into materials, financials, and industrials. Investors are now looking towards the potential "Santa Claus rally" in the year's final trading days for market support.
On a brighter note for the AI sector, Nvidia received long-awaited approval to ship its H200 chips to approved customers in China, a development that mitigated some AI trade worries. Meanwhile, industrial companies like GE Vernova demonstrated strong performance, driven by robust guidance for its AI data center-related products and services.
