Oracle’s AI-Driven Stock Plunge Sparks Broader Tech Sector Concerns
Oracle's shares have tumbled more than 40% since September's peak, marking one of the steepest declines among AI-linked stocks. The software giant's aggressive infrastructure investments—including an $18 billion debt raise—now face scrutiny as investors reassess the cost-benefit calculus of AI development.
The selloff reflects growing skepticism toward AI-related valuations, with Oracle serving as a bellwether for the sector. While Meta, Palantir, and AMD have seen 20%+ pullbacks from their highs, Oracle's sharper decline underscores its position as both beneficiary and cautionary tale in the AI Gold rush.
Market observers note the company's central role in AI infrastructure deals creates contagion risks. As capital expenditures collide with uncertain revenue timelines, Oracle's debt-fueled expansion may foreshadow challenges for smaller players in the ecosystem.
