As of about 12:30 p.m. ET on Dec. 12, 2025, U.S. markets are pulling back—led by AI-linked tech. Broadcom is tumbling on margin concerns, Oracle is still digesting a capex shock, and several hardware and “AI-adjacent” names are among the day’s biggest losers.
NEW YORK — Friday, Dec. 12, 2025 (12:30 p.m. ET update): The U.S. stock market’s late-year rally hit a speed bump Friday as investors rotated out of high-flying AI and AI-adjacent names—again—following a wave of scrutiny over profit margins, capital spending, and just how quickly AI investment translates into durable earnings. [1]
At roughly 12:27 p.m. ET, the Nasdaq-heavy trade was clearly under the most pressure: the Nasdaq 100 proxy QQQwas down about 1.8%, while the broader-market SPY was off roughly 1.1%. Blue chips (via DIA) were also lower, and small caps (via IWM) were down a bit more than 1%.
Below is a detailed, stock-by-stock breakdown of the top losers driving the midday tape—and what today’s key headlines and analyst takes (dated 12/12/2025) are saying about what comes next.
Market snapshot at ~12:30 p.m. ET
Investor mood shifted quickly from Thursday’s record-setting glow to a risk-off reset—especially in tech—amid rising yields and renewed debate over whether parts of the AI boom are priced for perfection. [2]
Midday (≈12:27 p.m. ET) index proxies:
- QQQ (Nasdaq 100): down ~1.84%
- SPY (S&P 500): down ~1.08%
- DIA (Dow Jones Industrial Average): down ~0.40%
- IWM (Russell 2000): down ~1.21%
Meanwhile, bond yields were also in focus. AP reported the 10-year Treasury yield rising around 4.19%, which can pressure equity valuations—especially growth stocks whose cash flows are weighted further into the future. [3]
Top stock market losers at midday
Prices and % moves below are as of ~12:27 p.m. ET (intraday moves can change quickly).
Biggest headline-driven plunges
- Fermi (FRMI): -34.66% to ~$9.97
- SanDisk (SNDK): -12.78% to ~$210.74
- Netskope (NTSK): -11.34% to ~$20.84
- Broadcom (AVGO): -10.53% to ~$363.60
Notable “AI-adjacent” decliners (hardware, networking, infrastructure)
- Corning (GLW): -7.17%
- Arista Networks (ANET): -6.62%
- Amphenol (APH): -6.18%
- Western Digital (WDC): -5.85%
- Seagate (STX): -5.83%
- Iron Mountain (IRM): -5.82%
- Quanta Services (PWR): -5.76%
- Micron (MU): -5.15%
- Oracle (ORCL): -5.02%
- AppLovin (APP): -4.96%
What’s driving today’s selloff: margins, capex, and “AI payoff” anxiety
Friday’s downside action has a common thread: the market is demanding clearer proof that AI spending will translate into sustained profitability—not just revenue growth.
Two developments helped set the tone:
- Broadcom’s margin message spooked investors even after strong results and upbeat revenue expectations, because the company warned that a higher mix of AI-related products can pressure margins. [4]
- Oracle’s AI infrastructure spending shock continues to ripple through the market. Reuters reported that Oracle’s update sparked fresh debate around overvaluation and durability in the AI trade, even as some investors argue the issues are company-specific and not a definitive “AI bubble” signal. [5]
This push-and-pull shows up clearly in today’s index behavior: tech is getting hit hardest while other pockets of the market hold up better—a dynamic Schwab highlighted as a rotation out of tech/AI leadership and into other areas. [6]
Broadcom (AVGO): strong quarter, ugly reaction
Midday move: -10.53%
Broadcom is the day’s marquee decliner among mega-cap AI-linked names, and the reason is a classic 2025 setup: earnings beat + guidance beat + stock down hard anyway.
Reuters reported Broadcom’s shares dropped sharply after the company warned that growing sales of lower-margin custom AI processors were squeezing profitability, fueling worries that the AI business could be less lucrative than investors hoped. [7]
AP similarly framed Broadcom as a major drag on the market, noting investor focus on margins and momentum even as the company posted strong AI growth. [8]
What analysts are saying today
- Reuters cited commentary suggesting the “panic button” may be premature, and also reported that Morningstar analysts were not alarmed by the margin commentary. [9]
- Investopedia noted that some analysts remain constructive on Broadcom’s positioning in AI hardware and cited broad buy ratings coverage. [10]
- Business Insider’s midday coverage emphasized that investors appeared disappointed by limited AI revenue visibility beyond the near term and appeared “underwhelmed” by backlog framing—another sign the bar has moved higher for AI leaders. [11]
Why it matters: When a bellwether like Broadcom sells off this aggressively after strong numbers, it often signals the market is repricing the quality of earnings (margins, capex intensity, customer concentration), not simply chasing top-line momentum. [12]
Oracle (ORCL): the capex shock keeps echoing
Midday move: -5.02%
Oracle remains a focal point for the “AI trade reality check.” Reuters reported that Oracle’s stumble has rattled parts of the AI rally after the company warned of a major capital spending jump tied to its AI ambitions, reigniting valuation debate. [13]
Schwab’s morning note also pointed to Oracle’s slide as part of the broader narrative pushing money flow away from tech as investors reassess AI spending. [14]
Key takeaway: Oracle is not just being traded on “earnings” anymore—it’s being traded on whether the market believes the AI infrastructure buildout is efficient, financeable, and ultimately profitable.
SanDisk (SNDK), Micron (MU), Seagate (STX), Western Digital (WDC): AI-adjacent hardware gets hit
These names are often treated as derivatives of AI infrastructure—beneficiaries of data center buildouts, storage demand, and memory cycles. When sentiment breaks, they can fall fast.
Midday moves:
- SanDisk (SNDK): -12.78%
- Micron (MU): -5.15%
- Seagate (STX): -5.83%
- Western Digital (WDC): -5.85%
While not every move has a single company-specific headline attached at midday, today’s broader catalyst is clear: multiple outlets described a renewed pullback in AI-related shares—especially hardware—after Broadcom’s margin message and Oracle’s spending concerns. [15]
Why investors care: In AI, “more demand” is no longer enough—markets are asking whether incremental demand comes with incremental margins, or with rising costs and lower profitability (e.g., custom silicon, system-level sales, infrastructure buildouts). [16]
Arista (ANET), Amphenol (APH), Corning (GLW): the AI data-center supply chain gets repriced
Midday moves:
- Corning (GLW): -7.17%
- Arista Networks (ANET): -6.62%
- Amphenol (APH): -6.18%
These are exactly the types of names that can swing with the market’s “AI capex confidence” level—networking, connectivity, and components tied to cloud/data-center expansions.
Schwab’s update explicitly described Broadcom weakness weighing on a broader basket of semiconductor and AI-linked stocks, reinforcing the idea that today’s move is less about one company and more about a theme-level reset. [17]
Quanta Services (PWR) and Iron Mountain (IRM): infrastructure and data-related plays slide too
Midday moves:
- Quanta Services (PWR): -5.76%
- Iron Mountain (IRM): -5.82%
These declines show how broadly “AI infrastructure” exposure is being sold today—from chips to data to physical buildout. Schwab noted the market is watching rotation dynamics and rising yields, both of which can amplify volatility in crowded themes. [18]
Netskope (NTSK): strong quarter, cautious tone, big drop
Midday move: -11.34%
Netskope—one of the newer public cybersecurity names—was under notable pressure despite reporting better-than-expected results. Investor’s Business Daily reported Netskope’s quarter beat estimates on key metrics and provided forward guidance, but the stock still fell after the report, highlighting a familiar pattern in this tape: beats don’t guarantee upside if expectations are elevated. [19]
Barron’s “stock movers” roundup also flagged Netskope’s drop, attributing weakness to cautious forward guidance even after beating quarterly expectations. [20]
For investors tracking fundamentals, Netskope’s own earnings release highlighted continued growth in recurring revenue metrics (including ARR), underscoring why the stock can be volatile: the market is weighing growth vs. profitability and forward visibility. [21]
Fermi (FRMI): a funding reversal sparks a collapse
Midday move: -34.66%
Fermi is one of the most dramatic movers on the board Friday after a major tenant-backed funding commitment fell apart.
MarketWatch reported that Fermi’s first tenant terminated a $150 million funding agreement tied to its flagship Project Matador, a sharp blow for a newly public, AI-power-infrastructure story that needs credible tenants and financing to support its long-term buildout narrative. [22]
Barron’s separately described the stock plunging after the company disclosed the loss of the funding commitment and outlined key project details and timeline claims. [23]
The Financial Times also characterized the move as nearly halving after the tenant pulled funding, while noting high short interest and that multiple banks still rate the stock positively—illustrating just how polarizing early-stage AI infrastructure plays can be. [24]
Investing.com added that the exclusivity period tied to the earlier non-binding arrangements expired on Dec. 9 and that the parties were still negotiating a potential lease—important nuance for traders watching for follow-up disclosures. [25]
What to watch next: near-term catalysts and “forecast” cues investors are using now
Even as tech sells off, many strategists are framing today as a rotation and re-rating moment—not necessarily the end of the broader bull trend.
Schwab’s Dec. 12 market update emphasized that investors are increasingly looking ahead to next week’s catalysts—especially a major jobs report and inflation data—and argued the market may be in a consolidating phase “waiting for its next catalyst.” [26]
Meanwhile, Reuters noted that many investors remain optimistic about AI as a long-term strategy even after Oracle’s stumble, while acknowledging rising skepticism around valuation and timelines for payoffs. [27]
Near-term questions dominating forecasts into next week:
- Will bond yields keep climbing, tightening financial conditions for growth stocks? [28]
- Do companies provide clearer AI revenue and margin visibility—especially those exposed to custom silicon and infrastructure-heavy spending? [29]
- Does the market continue rotating away from mega-cap AI leadership into other sectors—or does today’s selloff stabilize and revert? [30]
Bottom line
As of midday on Dec. 12, 2025, the market’s “AI trade” is facing another sharp reality check—this time sparked by Broadcom’s margin pressure narrative and amplified by ongoing concerns about Oracle’s AI-driven capex ramp. [31]
The biggest losers aren’t limited to one corner of tech: from semis (Broadcom) to storage (SanDisk) to cybersecurity (Netskope) to speculative infrastructure (Fermi), the common denominator is a market that’s asking the same question louder: What’s the ROI—and when does it show up in margins? [32]
This article is for informational purposes only and is not investment advice. Prices are intraday and may change rapidly.
References
1. www.reuters.com, 2. apnews.com, 3. apnews.com, 4. www.reuters.com, 5. www.reuters.com, 6. www.schwab.com, 7. www.reuters.com, 8. apnews.com, 9. www.reuters.com, 10. www.investopedia.com, 11. africa.businessinsider.com, 12. www.reuters.com, 13. www.reuters.com, 14. www.schwab.com, 15. www.investopedia.com, 16. www.reuters.com, 17. www.schwab.com, 18. www.schwab.com, 19. www.investors.com, 20. www.barrons.com, 21. investors.netskope.com, 22. www.marketwatch.com, 23. www.barrons.com, 24. www.ft.com, 25. www.investing.com, 26. www.schwab.com, 27. www.reuters.com, 28. apnews.com, 29. www.reuters.com, 30. www.schwab.com, 31. www.reuters.com, 32. www.reuters.com
