1. Broadcom’s Slide Raises AI Valuation Concerns
Shares of Broadcom sank 11.5% on Friday, erasing gains made after the semiconductor company reported better-than-expected quarterly results and lifted its full-year outlook the previous day. Comments from executives on the earnings call were interpreted by some investors as signaling a slower ramp for certain artificial-intelligence products, reigniting debate over elevated valuations across the AI supply chain. Broadcom ended the week as the worst performer among widely held technology names, and the decline spilled into shares of Meta Platforms and Nvidia, both of which also closed lower for the week.
2. Oracle Faces Questions on Cloud Commitments
Oracle endured two consecutive sessions of heavy selling. The stock fell nearly 11% on Thursday after quarterly revenue missed analyst estimates, forward guidance came in below expectations, and management indicated higher capital expenditure plans. Pressure intensified Friday, with an additional 4.5% decline following a Bloomberg report that construction timelines for several data centers intended for OpenAI had been postponed. Oracle stated that all project milestones remain on schedule, but the report contributed to broader doubts about the pace of cloud infrastructure spending.
3. Nvidia Receives Conditional Approval for Chip Exports to China
After Monday’s closing bell, former U.S. President Donald Trump posted on social media that Nvidia would be permitted to export its H200 graphics-processing units to approved customers in China, subject to a 25% fee payable to the U.S. government. The announcement marked a shift from arrangements reached in August, when Nvidia agreed to allocate 15% of new, lower-performance H20 devices for the Chinese market in exchange for export licenses. Chinese buyers reportedly showed limited interest in the H20, and market participants spent the week debating potential demand for the H200, which, while less powerful than Nvidia’s flagship H100, offers a meaningful upgrade over the H20. The development provided some relief to Nvidia shares but did not fully offset broader AI-related selling pressure.
Imagem: Internet
4. GE Vernova Leads Industrial Strength on Long-Term Outlook
On the industrial side, GE Vernova gained ground early in the week after management projected growth through fiscal 2028 at an investor meeting Tuesday evening. The provider of power-generation equipment and services, important to energy-intensive data centers that underpin artificial intelligence applications, closed at a record high Wednesday. Although the stock gave back 4.6% Friday, it remained the week’s top performer among industrial names. Analyst target prices were adjusted higher, with one target moving to $800 from $700 per share. Honeywell spinoff Solstice Advanced Materials and diversified manufacturer Dover also posted weekly gains, reflecting continued interest in infrastructure tied to AI workloads.
Fed Cut Quickly Fades from View
Last Wednesday’s broad rally after the Federal Reserve’s quarter-point rate reduction, its third of 2024, was short-lived. By Friday, the market’s focus had shifted to company-specific news and sector rotation, erasing the midweek advance. Investors continue to monitor monetary policy signals, but individual corporate developments dominated trading. Full details of the latest policy decision can be found on the Federal Reserve’s official website.
Looking Ahead
With the Santa Claus rally window set to open later this month, traders will watch whether seasonal buying overcomes lingering concerns about technology valuations, export policy uncertainty and the durability of earnings guidance. Until then, sector rotation and company-specific headlines are likely to remain the primary drivers of day-to-day market moves.
Crédito da imagem: CNBC
