CNBC's Julia Boorstin joins 'Fast Money' with breaking news on a TikTok sale.
In mid-December 2025, the stock market experienced a significant psychological shift. High-flying semiconductor stocks, which had led the market for months, faced heavy selling pressure following earnings reports from major tech players like Oracle NYSE: ORCL and Broadcom NASDAQ: AVGO.
Oracle Corp (NYSE:ORCL) just spurred another tech selloff , despite the company denying a Financial Times report that Blue Owl Capital's plans to finance its $10 billion Michigan data center fell through.
Oracle's stock has dropped 19% within just one month, unsettling investors who previously witnessed its rise earlier this year. The decline began after a revenue miss in the December quarter, but a closer examination reveals further troubling factors.
Oracle's selloff, tied to AI spending and debt fears, has rattled investors. Diversifying with top tech ETFs like XLK could help mitigate single-stock risk.
In recent weeks, Oracle's stock has been cut in half, with Mr. Market finally acknowledging risks tied to Oracle's ambitious plans for OCI. Oracle's Q2 FY2026 results showed 34% y/y cloud growth and a -$10B free cash flow due to aggressive, debt-fueled AI CAPEX spending. Further, ORCL's business backlog (RPO) surged to $523B, driven by major commitments from Meta and Nvidia, but execution and OpenAI funding risks persist.
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Major U.S. indexes fall on AI weakness. Investors are growing enthusiastic over Chinese chipmakers.
Major U.S. indexes fall on AI weakness. Blue Owl Capital pulls out from funding Oracle's $10 billion data center.
Leveraged Oracle ETFs faced an early test of volatility Wednesday as news of stalled data center funding talks sent Oracle Corp. (ORCL) shares down 4.8% midday. That triggered sharp moves in both the bull and bear products launched less than a month ago.
The slide this month by Oracle (ORCL) and Broadcom (AVGO) has reminded investors that artificial intelligence (AI) stocks don't move up in a straight-line fashion. They may also want to consider that prior pullbacks by mega-cap AI equities have often proven to be buying opportunities.
New rumors of stalled data-center funding have sent Oracle's stock lower, but some experts argue the negative narrative has gotten too harsh.