Oracle and Broadcom rattle markets as AI trade hits a reality check | CTech

Fear of heights may be the simplest way to describe what has gripped Wall Street in recent days around AI-related stocks. Oracle and Broadcom, two of the most prominent names in what is now widely referred to as the “AI trade,” a broad bet on the artificial intelligence revolution, sent tremors through the market when Oracle fell 15% over the course of the week and Broadcom plunged 11.5% on Friday alone. The sell-off came on a day when risk aversion had already taken hold, with the Nasdaq down 1.7% and the S&P 500 falling 1.1%.

Yet viewed from a longer perspective, 2025, now just two weeks from its end, still looks like another strong year on Wall Street, one likely to leave investors smiling and traders and analysts collecting generous bonuses.

What, then, should be made of the renewed anxiety that has resurfaced after several weeks in which talk of an AI bubble seemed to…