Oracle $ORCL ( ▲ 7.58% ) is taking a beating after posting quarterly results that showed a revenue miss, a surge in capex, and far more cash burn than analysts expected. The stock dropped sharply, and the fallout is spreading across the AI ecosystem as investors reassess the sector’s risk profile.
AI chip leaders are getting hit hardest. Nvidia $NVDA ( ▲ 3.74% ) , Broadcom $AVGO ( ▲ 1.98% ) , and AMD $AMD ( ▲ 6.87% ) all slid early as traders pulled back from high-multiple names tied to data center spending. The pain extended to the neocloud players too. CoreWeave $CRWV ( ▲ 22.99% ) , Nebius $NBIS ( ▲ 13.95% ) , IREN $IREN ( ▲ 10.06% ) , and Cipher Mining $CIFR ( ▲ 7.76% ) all saw losses as worries over hyperscale demand rippled outward.
AI infrastructure names GE Vernova $GEV ( ▲ 3.07% ) and Vertiv $VRT ( ▲ 4.57% ) also traded lower, reflecting concerns that a more cautious spending environment could weigh on power and cooling demand. Server makers Super Micro $SMCI ( ▲ 5.14% ) , Dell $DELL ( ▲ 3.05% ) , and HPE $HPE ( ▲ 3.21% ) fell as well, signaling broad risk-off sentiment across the hardware supply chain.
The broader market has staged a solid rebound since the November 20 lows, powered mostly by optimism around Google and global growth trends. But inside the AI trade itself, momentum has fractured. Since that rebound started, Nvidia has been the only stock in the VanEck Semiconductor ETF $SMH ( ▲ 3.07% ) to finish in the red, with AMD the second-worst performer over the same stretch.