Oracle-Broadcom stumble rattles AI stocks

Profit pressure: A car drives past signage displayed outside of Broadcom’s headquarters in California. Carlson does not recommend clients sell AI-exposed stocks such as Nvidia, and says the outlook for many such stocks remains solid. — Bloomberg

NEW YORK: The red-hot trade backing artificial intelligence (AI)-related stocks has taken a bruising from back-to-back troubling updates from Oracle and Broadcom, reigniting concerns about frothy valuations and an AI bubble.

Still, investors say reasons for optimism about AI remain intact, and many are wary about calling a top.