Oracle shares fall to a one-year low amid concerns over $638 billion backlog fulfillment and rising debt levels.
Oracle (NYSE: ORCL) stock dropped to a 52-week low last Friday, down 62% from its all-time high. The decline follows concerns about customers potentially failing to meet commitments tied to a $638 billion order backlog for AI infrastructure capacity.
The company has invested heavily in expanding its data centers, which offer high-performance GPU clusters for AI development. Oracle’s backlog reflects strong demand, but rising debt levels raise questions about financial sustainability.
Shares remain under pressure as investors weigh the risks of unfulfilled orders against the company’s leadership in cost-efficient AI infrastructure.