Wall Street’s focus shifted sharply on Friday, with technology and AI stocks tumbling while select retail, payment, and travel names surged. Broadcom (AVGO) led the decliners, falling 10.5% despite reporting strong quarterly earnings and 74% growth in AI chip revenue, as investors questioned the sustainability of its high-flying AI business. Oracle (ORCL) continued its slide, down 4.5%, after announcing a one-year delay for OpenAI data centers and signaling concerns about financing its AI expansion.
Other tech and AI names also pulled back, including Nvidia (-2%), Micron (-4.8%), and Palantir (-1.8%), reflecting lingering worries of an AI bubble.
On the upside, Lululemon (LULU) jumped 11-12% following strong Q3 results and the announcement of a CEO transition.
Payment giants Visa (+6.4%), Mastercard (+4.8%), and American Express (+2.7%) rallied on analyst upgrades, while cruise lines Royal Caribbean (+7.6%), Norwegian (+7%), and Carnival (+6.2%) led gains in the travel sector.
The market rotation highlights a cautious sentiment: investors are stepping back from the tech-heavy AI trade while seeking opportunities in retail, payments, and travel.