Wall Street slides as renewed AI sell-off hits tech stocks

Wall Street sold off sharply on Friday as renewed concerns about a potential artificial intelligence bubble rattled investors. The tech-heavy Nasdaq Composite fell as much as 1.8% after chipmaker Broadcom unsettled the market with a weaker-than-expected outlook for AI. Although the company beat forecasts on both earnings and revenue, its shares slid 11% as investors questioned whether growth momentum is starting to fade. The move followed a bruising session a day earlier, when more than $100 billion (£75 billion) was wiped from the market value of Oracle Corp (NYSE: ORCL) amid doubts over the payoff from its heavy AI investments. Oracle shares fell a further 5% on Friday, leaving the stock on course for a weekly decline of around 15%, after a Bloomberg report said the company has delayed completion of several data centres linked to its partnership with OpenAI. Citing people familiar with the projects, the report said the timelines have been pushed back from 2027 to 2028, largely due to labour and materials shortages. Oracle reportedly stressed that the revisions relate to scheduling rather than the scale of the partnership, and said it remains committed to delivering the agreed infrastructure. One data centre site in Abilene, Texas, is understood to be progressing according to earlier milestones. Oracle, which remains a smaller player in the global cloud market, moved aggressively into AI infrastructure this year through its $300bn agreement with OpenAI. The partnership centres on building large-scale data centre capacity to support the training and deployment of advanced AI models. Shares were trading at around $188 in early afternoon dealings on Friday. Broader market sentiment also weakened, with the S&P 500 dropping as much as 1.3% as concerns grew that valuations across the technology sector may be stretched while companies continue to pour billions into AI. If anyone reads this article found it useful, helpful? Then please subscribe www.share-talk.com or follow SHARE TALK on our Twitter page for future updates. Terms of Website Use All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned Like this:Like Loading...

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