By TradingView
Publication Date: 2025-12-12 19:44:00
By Saqib Iqbal Ahmed and Lewis Krauskopf
The red-hot trading backing artificial intelligence stocks has taken a hit from back-to-back worrisome updates from Oracle and Broadcom, rekindling concerns about inflated valuations and an AI bubble.
Still, investors believe the reasons for optimism around AI remain, and many are wary of calling a peak.
With the rise of technology, investors flocked to AI-related companies this year, promising to make corporate America more efficient.
However, some investors believe that AI-related stocks are overvalued. Prominent names like Michael Burry expressed pessimism, comparing the recent AI boom to the dot-com era of the 1990s. However, for now, short selling is limited to smaller companies, and few are making bearish bets against the biggest AI names.
Recent concerns have focused on Oracle and Broadcom. Shares of Oracle plunged as much as 17% since Wednesday’s close after the company raised debt to finance its ambitious AI project.
