<div id="readability-page-1"><div id="ArticleBody-InlineImage-108241611"><div><div><p>Signage at the Broadcom Inc. headquarters in San Jose, California, U.S., on Monday, June 2, 2025.</p><p>David Paul Morris | Bloomberg | Getty Images</p></div></div></div><div><p>The sell-off in artificial intelligence stocks continued unabated Friday stateside. <span id="SpecialReportArticle-QuoteInBody-1">Broadcom<span><span id="-WatchlistDropdown"></span></span></span> shares tumbled more than 11% as investors grew concerned over lower margins and uncertain deals. Names such as <span id="SpecialReportArticle-QuoteInBody-3">Nvidia<span><span id="-WatchlistDropdown"></span></span></span>, <span id="SpecialReportArticle-QuoteInBody-4">Advanced Micro Devices<span><span id="-WatchlistDropdown"></span></span></span> and <span id="SpecialReportArticle-QuoteInBody-5">Oracle<span><span id="-WatchlistDropdown"></span></span></span> fell in sympathy, which caused major U.S. indexes to close lower.</p><p>It was a motif patterning the week. Even though the Dow Jones Industrial Average rose 1.1% week on week on the back of outperformance by financial stocks, tech names dragged down the <span id="SpecialReportArticle-QuoteInBody-6">S&amp;P 500<span><span id="-WatchlistDropdown"></span></span></span> and the <span id="SpecialReportArticle-QuoteInBody-7">Nasdaq Composite<span><span id="-WatchlistDropdown"></span></span></span>, which fell 0.6% and 1.6% respectively for the week.</p><p>That said, investors could have just been jittery amid the narrative of an apparent AI bubble, and were spooked by any sign of bad news. After all, Broadcom's earnings — as well as its guidance for the current quarter — breezed past expectations.</p><p>&#34;Frankly we aren't sure what else one could desire as the company's AI story continues to not only overdeliver but is doing it at an accelerating rate,&#34; Bernstein analyst Stacy Rasgon, who has a &#34;buy&#34; rating on Broadcom, wrote in a Friday note.</p><p>Future prospects also look rosy, according to UBS. &#34;We expect high profitability and the accelerating impact of the AI, power and resources, and longevity themes to drive 2026 performance,&#34; said strategist Sagar Khandelwal.</p><p>But in the near term, investors may still be flighty, unless something concretely reassuring, such as Oracle achieving positive cash flow, reassures them the snapping sound is just a twig in the forest.</p></div><div><p><strong>U.S. stocks dragged down by AI names. </strong>Major indexes fell Friday, a day after they hit record highs.<strong> </strong>The pan-European Stoxx 600 retreated almost 0.5%. Separately, the U.K. economy unexpectedly shrank 0.1% in the three months to October. </p><p><strong>Oracle will finish data centers on time. </strong>The company issued its response to a Bloomberg report, which cited unnamed people, that Oracle will complete data centers for OpenAI in 2028 rather than 2027. &#34;There have been no delays,&#34; Oracle said.</p><p><strong>Coinbase to have an in-house prediction market. </strong>It will be powered be Kalshi, a source close to the matter told CNBC, and is a play to expand asset classes available on the cryptocurrency exchange. </p><p><strong>The end of the 'Berkshire way'?</strong> Several aspects of Berkshire Hathaway's leadership transition are signaling that the conglomerate is drifting away from the famously decentralized &#34;Berkshire way,&#34; CNBC's Alex Crippen writes.</p><p><strong>[PRO] China's food security strategy. </strong>The spate between Beijing and Washington over soybean purchases has highlighted the evolution of China's domestic agriculture industry. Goldman Sachs thinks this is the best way to play the sector.</p></div><div id="ArticleBody-InlineImage-106444781"><div><div><p>A bear statue stands outside the Frankfurt Stock Exchange, operated by Deutsche Boerse AG, in Frankfurt, Germany, on Friday, March 13, 2020. Top European CEOs are fearing a euro zone recession as a confluence of economic shocks continues to threaten the outlook for the bloc.</p><p>Alex Kraus | Bloomberg | Getty Images</p></div></div></div><div><p><strong>Global week ahead: Europe under fire</strong><strong> </strong></p><p>U.S. President Donald Trump's verdict on Europe: a &#34;decaying&#34; group of nations led by &#34;weak&#34; people. His criticism in a recent Politico interview adds to a tough period for the bloc, with challenges on multiple fronts testing European leaders in the final weeks of the year.</p><p>This week looks set to be critical, with a high-stakes summit in Brussels and the European Central Bank's final policy meeting of the year. Key topics for this week include defrosting frozen Russian assets for Ukraine aid; EU vs. U.S. in trade and tech, and updated economic figures at the ECB meeting.</p><p><em><strong>— </strong>Leonie Kidd</em></p></div></div>

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<p>Tech stocks, including Broadcom, saw a sell-off, causing major U.S. indexes to fall. Despite Broadcom's strong earnings and guidance, investor concerns over margins and deals led to a 11% drop in its shares. The Dow rose 1.1% due to financial stocks, but tech dragged down the S&P 500 and Nasdaq. Analysts remain optimistic about Broadcom's future, but investors are jittery amid AI bubble fears.</p>

CNBC Daily Open: Investors sell off tech despite steady Broadcom numbers