AI-Themed Stocks Take More Hits, Sending Nasdaq Lower

TikTok has formalized investment agreements with Oracle and two investment firms, a significant step towards maintaining its operations in the United States amid ongoing scrutiny and potential bans. This move aims to solidify TikTok's presence in the U.S. market, addressing years of uncertainty regarding its future in the country.

Oracle's shares have surged following positive developments in its partnership with TikTok and ongoing discussions regarding fundraising efforts with OpenAI. This progress indicates a strengthening of Oracle's position in the competitive tech market.

TikTok has approved the sale of its U.S. operations to Oracle and other American investors, a decision influenced by ongoing scrutiny from the U.S. government and previous threats of a ban by President Donald Trump if the company did not divest its American assets. This move comes as part of a broader effort to comply with regulatory demands and mitigate national security concerns.

California Resources has successfully completed its acquisition of Berry Corp, resulting in the delisting of Berry Corp's shares from the Nasdaq stock exchange. This strategic move is part of California Resources' efforts to enhance its operational capabilities and market position.

Five-star analyst Jed Dorsheimer from William Blair has issued a stark assessment of Tesla's stock, stating it is worth only about $30-$40 per share, reflecting a significant shift in market perception. This evaluation comes as Tesla continues to rely heavily on electric vehicle sales, which constituted over 75% of its revenue in the third quarter of 2025.

Morgan Stanley has set a remarkable price target for Micron Technology, highlighting the company's recent quarter as one of the most significant revenue and profit surprises in the U.S. chip industry, second only to Nvidia's performance. This development follows a period of heightened investor interest in semiconductor stocks driven by advancements in artificial intelligence.

Tesla's stock performance is under scrutiny as the company navigates the implications of SpaceX's upcoming initial public offering (IPO), which is anticipated to occur in 2026. This IPO is expected to raise over $30 billion and could value SpaceX at approximately $1.5 trillion, reflecting the growing significance of Musk's ventures in the market.

A significant decline in technology stocks has led to a drop in the Nasdaq index, driven by rising concerns over artificial intelligence valuations and spending. This downturn reflects a broader trend of volatility in the tech sector, with notable declines in companies like Broadcom, Oracle, and Nvidia contributing to the negative sentiment.