If losses hold, Oracle is poised to shed nearly $93 billion in market value. Its peers such as Nvidia, Micron, and Core Weave were down between 0.9% and 7.7% in early morning trading.
Tech investors are worried about an AI bubble, stoked by sky-high valuations, limited real-world productivity gains and complex circular investments, even as companies raise billions in debt to build infrastructure. Oracle on Wednesday warned capital expenditures for fiscal2026 are now expected to be $15 billion higher than the company’s estimates in September.
In a bid to compete with industry giants like Amazon, Microsoft and Google, Oracle has signed cloud-computing deals with OpenAI and others which has helped the stock climb nearly 34% this year. Analysts have said a big portion of Oracle’s capital expenditure is tied to OpenAI-related data centers. BofA Global Research analysts, however, brushed off concerns over the inflated expenditure.
“The current weakness is more capex investment cycles needed to support demand, with the company paying the price for the abnormal speed in which investment is required to meet current AI demand trends,” they said.
–Reuters–
