The one-two punch between Oracle and Broadcom hits AI trading, but investor optimism remains

vm_admin
The one-two punch between Oracle and Broadcom hits AI trading, but investor optimism remains

By reuters.com
Publication Date: 2025-12-12 00:00:00

  • Oracle’s AI spending raises valuation and debt concerns
  • Investors are becoming picky about investing in AI stocks
  • Short sellers show little interest in extending bearish bets against AI stocks
  • Investors are encouraged by the overall market strength given the weakness in AI trading
NEW YORK, Dec 12 (Reuters) – Red-hot trading supporting artificial intelligence stocks has taken a hit from back-to-back worrisome updates from Oracle and Broadcom, rekindling worries about stretched valuations and renewed anxiety AI bubble.

Still, investors believe the reasons for optimism around AI remain, and many are wary of calling a peak.

Sign in Here.

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. Well-known names such as Michael Burry were pessimistic and compared the recent AI boom to the dot-com era of the 1990s. However, currently short selling is limited to smaller companies,…

Related Posts