Oracle and Microsoft underperformed peers due to high AI infrastructure costs and OpenAI exposure, data shows.
Oracle stock fell 24.8% in the first half of 2026, mirroring Microsoft’s decline, while Amazon and Alphabet posted gains. The drop reflects rising capital spending on AI infrastructure, which has weighed on hyperscalers’ profitability.
AI infrastructure firms like Vertiv and GE Vernova outperformed as demand for construction surged. Oracle and Microsoft also faced pressure from their ties to OpenAI, with Oracle’s $300 billion deal set to begin in 2027.
The divergence highlights uneven performance among hyperscalers amid shifting AI investment trends.