By Marcin Frąckiewicz
Publication Date: 2025-12-12 23:14:00
NEW YORK — Dec. 12, 2025 (6:00 p.m. ET) — A sharp pullback hit many of the U.S. stock market’s most closely watched AI stocks on Friday, as investors digested fresh concerns about profitability, margins, and the pace of payback from the biggest AI infrastructure buildout in modern tech.
By the closing bell, the Nasdaq Composite fell 1.69%, the S&P 500 dropped 1.07%, and the Dow slipped 0.51%, with the Nasdaq marking its lowest close since Nov. 25, according to Reuters’ market wrap. [1]
At the center of the selloff: Broadcom and Oracle. Broadcom’s margin commentary reignited doubts about the economics of custom AI silicon, while Oracle’s AI-heavy cloud expansion and OpenAI-linked data-center plans drew a new wave of scrutiny. [2]
Why AI stocks fell on Friday: “show me the profits” replaces “show me the capex”
The market’s message on Dec. 12 was blunt: AI is still the dominant theme — but investors want clearer evidence of durable earnings power,…