Nvidia shares fell 3.82% as broader tech sentiment wanes amid AI infrastructure financing concerns.

Nvidia shares fell 3.815% in pre-market trading on December 18, 2025, as broader tech sentiment waned amid renewed concerns over AI infrastructure financing. The decline mirrored weakness across the sector, with Oracle and Broadcom also under pressure following reports that Oracle’s $10 billion data center project lost critical backing from Blue Owl Capital. Investors are recalibrating risk exposure after months of AI-driven gains, with debt-fueled capital spending in the space drawing scrutiny.

The selloff intensified after Oracle’s stock dropped nearly 5%, signaling broader anxiety over the feasibility of large-scale AI investments.

Nvidia’s decline, though not tied to company-specific news, reflects market caution around valuation multiples and demand sustainability. The stock’s performance highlights growing sensitivity to macroeconomic signals, including Federal Reserve rate-cut expectations and softening labor data, which have shifted investor focus toward defensive positioning.

Upcoming earnings from Micron Technology could provide clarity on AI semiconductor demand, as the chipmaker supplies components for Nvidia’s server systems. However, the sector’s near-term outlook remains clouded by uncertainty around debt-dependent AI projects and evolving regulatory scrutiny. The Nasdaq’s 1.1% drop underscores a fragile market environment, where rapid rotations out of high-growth tech names are reshaping equity dynamics.

The pullback in tech stocks has sparked renewed debates over the durability of AI-driven investment cycles, with analysts closely watching whether earnings growth can justify stretched valuations. While short-term volatility persists, long-term investors remain split on whether the current correction represents a buying opportunity or a warning sign of overleveraged growth.