Investor skepticism over AI infrastructure returns pressures Nvidia and Oracle shares, with declines of 9% and 28% respectively.
Nvidia and Oracle shares have fallen 9% and 28% over the past three months as investors question the payoff from AI infrastructure spending. Concerns center on whether revenue growth is organic or reliant on large funding commitments to partners.
Nvidia’s $250 billion funding talks with OpenAI and a $500 billion infrastructure deal with SK Group have fueled doubts. Oracle’s decline reflects broader unease about AI-driven capital expenditures, despite long-term growth projections.
Market reaction has been cautious, with selling pressure persisting amid uncertainty over AI adoption timelines and return on investment.