This development reflects widespread panic as investors collectively withdraw from artificial intelligence (AI) stocks, which had been a major driver of the market throughout the past year.
The sell-off wasn't limited to Broadcom; it spread to other major players as well. Oracle fell another 4% just one day after dropping 10% following its earnings report. Nvidia and Advanced Micro Devices, two pillars in the AI graphics chip market, also lost approximately 3% and 4% of their value, respectively.
AI was considered a key driver of the stock market and the US economy this year. Therefore, any negative signal triggers a ripple effect. The Nasdaq index fell about 1.4% on December 12, while the S&P 500 lost nearly 1%, showing that concerns are no longer limited to the technology sector alone.
The businesses most severely impacted are those closely tied to AI infrastructure, a sector that has boomed as major tech corporations have been building massive data centers to meet the enormous computing demands. Broadcom, a supplier of custom chips to many tech giants, has seen its market value nearly double in the past two years before continuing to climb into 2025, leading to increasing pressure to take profits.
Analysts believe this is primarily a technical correction after a period of rapid growth. Broadcom reported a 28% increase in quarterly revenue, with AI chip sales surging 74% to $18.02 billion, exceeding market forecasts. Adjusted earnings per share also surpassed expectations, reinforcing the view that the company's long-term growth foundation remains intact. However, investors are beginning to worry about short-term profit margins as input costs for AI systems continue to rise.
Source: https://baotintuc.vn/thi-truong-tien-te/pho-wall-rung-dong-khi-co-phieu-ai-lao-doc-20251213095511066.htm
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