NVIDIA shares drop 3.82% on Oracle funding uncertainty and tech sector weakness

NVIDIA shares fell 3.815% in pre-market trading on Dec. 18, 2025, signaling renewed investor caution ahead of key earnings reports. The decline came amid broader tech sector weakness, as Oracle’s $10 billion data center project faced financing uncertainty after Blue Owl Capital withdrew support, raising concerns about AI infrastructure demand and debt-driven expansion.

The Oracle-related selloff intensified scrutiny over tech firms’ reliance on off-balance-sheet funding for capital-intensive projects. NVIDIA, a key supplier of AI server chips, faced renewed skepticism as market participants questioned long-term profitability in the sector. Micron Technology’s upcoming earnings report, expected to highlight AI semiconductor demand, added to the cautious sentiment.

Investor anxiety was compounded by Federal Reserve signals suggesting potential rate cuts, though officials emphasized a measured approach. The Nasdaq and S&P 500 both retreated, with AI stocks disproportionately affected. NVIDIA’s decline reflected broader worries about valuation multiples and the sustainability of high-growth bets in an evolving macroeconomic landscape.

Analysts have also begun to weigh in on the broader implications of NVIDIA’s pre-market drop. While some see it as an overreaction in the context of a broader correction, others view it as a potential buying opportunity for long-term investors. The stock's recent volatility highlights the sensitivity of tech equities to macroeconomic and funding developments.