Goldman Sachs analyst Kash Rangan lowered its price target to $220 from $320, while maintaining a neutral rating. Rangan cited modest reported revenue growth and noted that higher capital expenditures and free cash flow burn increased concerns over Oracle’s growing financial needs.

Oracle's capital expenditures (capex) clocked in at $12 billion for the quarter, up from just $4 billion in the same period last year. It was also 50% more than the Street was expecting. Investors are wondering just how sustainable the capex spend is for the company, given how much it is relying on expensive financing.

The hit to Oracle and Broadcom weighed on other tech shares during the day, as investors worried about AI spending and the lack of a clear timeline on returns from the investments. The tech-heavy Nasdaq sank 1.4%, while the S&P 500 Index fell 0.9% on Friday afternoon, a day after finishing at a record high.

Investors are eyeing the following quarterly results for insight into the artificial-intelligence boom: ↘️ Oracle (ORCL): The software maker's [capital spending soared past expectations](

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Broadcom shares fell more than 11% on Friday after the chipmaker warned growing sales of lower-margin custom AI processors were squeezing profitability, sparking worries that the business may be less lucrative.

Wall Street’s major indexes were lower on Friday as investors left technology for other sectors as Broadcom and Oracle fueled concerns about an AI-fueled bubble and rising Treasury yields added pressure after some policymakers spoke out against easing monetary policy.

Recent financial reports from Oracle and Broadcom have raised alarms about valuations in the AI sector, leading to a stock market decline, yet optimism for AI technology remains among many investors.

Circle and Ripple were among the crypto upstarts that received approval on applications filed with the Office of the Comptroller of the Currency. The OCC, part of the Treasury Department, regulates national banks. Write to Rob Curran at [email protected]

Oracle’s stock fell more than 12% on Thursday on growing fears about the software giant’s massive AI spending — shaving more than $30 billion off co-founder Larry Ellison’s fortune. The Texas-based tech company’s stock tumbled to $194 a share from around $223 a share at the start of trading — wiping out $90 billion in market capitalization.