Quick Read – Oracle stock crashed 43% from its year-to-date peak, yet a swelling backlog of signed AI compute contracts signals real demand, not speculation. – OpenAI’s delayed IPO triggered a 9% single-week drop in Oracle shares, but strong AI demand makes the selloff look like…
overreaction. – William Blair added Oracle to its conviction list, citing it as discounted versus AI infrastructure peers with improving fundamentals. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Oracle didn’t make the cut. Grab the names FREE today
Oracle (NASDAQ:ORCL) shareholders can’t seem to catch a break with the stock crashing close to 43% off its year-to-date peak of $248 and change. If you chased a name on a rebound, you took a huge hit to the chin, and with shares quickly approaching the depths not seen since April, now that all of the Spring gains have been wiped out, questions linger as to what the next major move for the software titan and AI infrastructure fast-mover will be. Indeed, the company is not afraid to take a big swing.
With the recent mass layoff and other moves to shore up extra cash to spend on its AI data center buildout, it feels like the company is more than willing to absolutely floor it, even if it means taking the risk profile to heights that most investors wouldn’t be comfortable with. There’s a lot of negative cash flow and a boatload of debt, to say the least. And with the latest 21,000 job cut, Oracle needs its AI infrastructure bets to pay off sooner rather than later as it does its best to reallocate resources to serve the massive backlog that’s been built up.