Nvidia AMD Face Sell Off While Oracle Denies OpenAI Delays

The AI market experienced a significant downturn on Friday, December 12, 2025, as investor concerns over major players like Broadcom and Oracle triggered a broad sell-off. Broadcom Inc. shares plummeted nearly 11%—losing approximately $20 billion in value—after its first-quarter AI revenue forecast and CEO Hock Tan's comments disappointed investors who expected a more substantial boost from its artificial intelligence business. This led to a sharp decline in other AI-related stocks, including Nvidia, AMD, Micron, and Intel, with the Nasdaq Composite dropping 398 points. Oracle also faced scrutiny, with its stock falling over 2% amid reports of delayed data centers. The company is increasing its debt and spending on AI hardware, shifting from its traditional software focus. Despite these concerns, Oracle explicitly denied any delays in its agreements with OpenAI. The broader market reflected this caution, with the Dow Jones Industrial Average falling 0.5% and the S&P 500 declining 1.1%, partly due to rising interest rates and general skepticism about the returns on AI spending. Amidst this volatility, investment strategies are diversifying. BofA Securities suggests investors look beyond large AI hardware companies in Asia, recommending smaller, mid-cap "battleground" sectors like semiconductor equipment, PCB/CCL, and CPO for better growth opportunities. CPO, in particular, anticipates a 40% return on equity by 2025-2026 due to strong AI demand, with Asia's AI supply chain projected to grow 20% annually from 2025 to 2027. Meanwhile, billionaire investor Bill Ackman of Pershing Square is targeting AI leaders like Uber Technologies and Amazon, planning to own them by 2026. He acquired over 30 million shares of Uber in the first quarter, noting Uber's reliance on AI for rider matching, route tracking, and demand forecasting, in a global ride-sharing market expected to reach $918 billion by 2033. Ackman also bought over 5.8 million shares of Amazon, valued at about $1.3 billion, recognizing both companies' future growth tied to AI. In the realm of smaller AI firms, BigBear.ai, often compared to Palantir, has struggled since its public debut, missing revenue targets and facing projected revenue drops of 11-21% in 2025. Its revenue only grew from $146 million in 2021 to $158 million in 2024, far short of a $550 million prediction. In contrast, Innodata, a company specializing in preparing high-quality data for AI applications, shows more promise, with analysts expecting its revenue to grow at least 45% in 2025 and 26% in 2026. Globally, China is planning significant incentives for its chip sector, while the White House, through AI Czar David Sacks, is addressing President Trump's order to limit state AI regulations.

Key Takeaways

• Broadcom Inc. shares dropped nearly 11%, losing about $20 billion, due to a disappointing Q1 AI revenue forecast on December 12, 2025.
• The Broadcom downturn led to a broad sell-off affecting Nvidia, AMD, Micron, Intel, and Taiwan Semiconductor, causing the Nasdaq to fall 398 points.
• Oracle stock fell over 2% amid reports of delayed data centers and increased debt for AI hardware, though the company denied delays in deals with OpenAI.
• BofA Securities recommends investing in smaller, mid-cap Asian AI stocks in sectors like semiconductor equipment, PCB/CCL, and CPO, with CPO expecting a 40% return on equity by 2025-2026.
• Asia's AI supply chain is projected to grow 20% annually from 2025 to 2027.
• Billionaire investor Bill Ackman acquired over 30 million shares of Uber and over 5.8 million shares of Amazon (worth $1.3 billion), viewing both as key AI growth companies by 2026.
• Uber utilizes AI for rider matching, route tracking, and demand forecasting, operating in a global ride-sharing market expected to reach $918 billion by 2033.
• BigBear.ai, often compared to Palantir, has underperformed, with revenue growing from $146 million in 2021 to $158 million in 2024, missing a $550 million target, and expects an 11-21% revenue drop in 2025.
• Innodata, an AI data preparation company, is seen as a more promising investment, with analysts forecasting revenue growth of at least 45% in 2025 and 26% in 2026.
• China plans significant incentives for its chip sector, and the White House is addressing President Trump's order to limit state AI regulations.

Broadcom and Oracle disappoint AI investors

Broadcom's sales outlook did not meet investor hopes for AI, causing its stock to drop. Oracle also disappointed AI investors. This news comes as China plans big incentives for its chip sector. White House AI Czar David Sacks discussed President Trump's order to limit state AI rules. Ed Ludlow and Caroline Hyde from Bloomberg reported this on December 12, 2025.

Broadcom shares fall on AI sales forecast

Broadcom Inc. shares dropped after its AI market sales forecast disappointed investors. CEO Hock Tan's comments during a conference call also worried analysts. Matt Bloxham from Bloomberg Intelligence shared more details. This happened on December 12, 2025.

Broadcom stock drops as AI revenue forecast misses

Broadcom Inc. stock fell 5.7%, losing about $20 billion in value. This happened because its AI revenue forecast for the first quarter disappointed investors. They expected a bigger boost from the company's artificial intelligence business. Broadcom supplies chips for many devices and its infrastructure software powers AI data centers. While overall revenue should grow, the AI part is slower than hoped. The company expects strong AI demand, but investors want clearer plans for faster AI revenue growth.

BofA says find AI growth in smaller Asian stocks

BofA Securities advises investors to look past big AI hardware companies in Asia. They suggest focusing on smaller, mid-cap "battleground" sectors for better growth. A report from December 4, led by Winnie Wu, found over 330 Asian AI stocks. The best chances are in less-known sectors with many mid-cap stocks and good profits. Top sectors include semiconductor equipment, PCB/CCL, and CPO. CPO is very profitable, expecting a 40% return on equity by 2025-2026 due to AI demand. Asia's AI supply chain should grow 20% yearly from 2025 to 2027.

Oracle's AI hardware push raises debt concerns

Oracle's debt and spending on AI hardware are growing, causing mixed reactions. The company's fiscal second-quarter report for 2025 showed more borrowing and less free cash flow. Oracle is moving from software into artificial intelligence hardware. Its remaining performance obligations tied to AI have surged. Aaron Lee and Jingyue Hsiao from DIGITIMES Asia reported this on December 12, 2025.

Consider BigBear.ai stock before 2026

BigBear.ai is a popular AI stock that investors are watching closely. Many hope it can achieve success similar to Palantir. The stock price was 0.15% on December 9, 2025. This news was discussed in a video published on December 11, 2025.

AI stocks fall due to Broadcom and Oracle concerns

Artificial intelligence related stocks fell sharply on Friday. This happened due to concerns about major companies like Broadcom and Oracle. Broadcom shares dropped nearly 11% after the company raised worries about its profit margins. This led to a broad sell-off, affecting Nvidia, AMD, Micron, Intel, and Taiwan Semiconductor. Oracle stock also fell over 2% because of reports about delayed data centers. However, Oracle denied any delays in its deals with OpenAI.

AI stocks cause Nasdaq to drop 398 points

AI stocks led the Nasdaq to drop 398 points on Friday, December 12, 2025. Broadcom (AVGO) shares fell as much as 11.7%, even after good earnings reports. Investors are becoming more doubtful about how much money AI spending will make. The Dow Jones Industrial Average fell 0.5%, and the S&P 500 declined 1.1%. Rising interest rates and worries about OpenAI agreements also made investors cautious.

Bill Ackman eyes Uber and Amazon AI stocks

Billionaire investor Bill Ackman of Pershing Square wants to own Uber Technologies and Amazon by 2026. He bought over 30 million shares of Uber stock in the first quarter. Uber uses AI to match riders, track routes, and forecast demand. The global ride-sharing market is expected to grow tenfold to $918 billion by 2033. Ackman also bought over 5.8 million shares of Amazon stock, worth about $1.3 billion. Both companies are seen as leaders that will rely on AI for future growth.

Innodata stock could beat BigBear.ai next year

BigBear.ai has struggled since going public four years ago, with its revenue growth falling short of predictions. Its revenue only grew from $146 million in 2021 to $158 million in 2024, missing a $550 million target. The company faces contract disruptions and expects revenue to drop 11-21% in 2025. In contrast, Innodata, a smaller AI company, is seen as a more promising investment. Innodata helps prepare high-quality data for AI applications, a crucial step in AI projects. Analysts expect Innodata's revenue to grow at least 45% in 2025 and 26% in 2026.

Sources

• Broadcom Follows Oracle in Disappointing AI-Focused Investors
• Broadcom Shares Slide on AI Market Sales Outlook
• Broadcom Shares Slide After Investors Seek Bigger AI Payoff
• Look beyond AI ‘titans’ for growth stocks, BofA Securities says
• Oracle's rising debt and capital spending in AI hardware push prompt mixed reactions
• Should You Buy BigBear.ai Stock Before 2026?
• AI stocks sink on Broadcom, Oracle worries (NVDA:NASDAQ)
• AI Stocks Lead Nasdaq's 398-Point Nosedive: Stock Market Today
• 2 Artificial Intelligence (AI) Stocks Billionaire Bill Ackman of Pershing Square Absolutely Wants to Own in 2026
• Prediction: 1 Stock That Will Be Worth More Than BigBear.ai 1 Year From Now