Oracle stock is falling and default insurance prices are rising. Why it’s the focus of AI fears. Oracle is on the front line of fears about a bubble in spending on artificial intelligence. The cost of insuring against a potential default by the software and cloud-computing company is rising.

Shares in tech companies ranging from Nvidia to Meta Platforms are down on Thursday amid growing concerns around AI-fueled circular spending.

This creates an imbalance: the upside appears limited, while the downside risk increases if growth even modestly underperforms these elevated assumptions. Oracle still offers meaningful opportunities.

Oracle’s stock fell more than 12% on Thursday on growing fears about the software giant’s massive AI spending — shaving more than $30 billion off co-founder Larry Ellison’s fortune. The Texas-based tech company’s stock tumbled to $194 a share from around $223 a share at the start of trading — wiping out $90 billion in market capitalization.

Oracle stock drops after revealing $300 billion OpenAI partnership costs exceeded Wall Street estimates for AI infrastructure spending.

As of Tuesday, November 25, Oracle Corporation’s ORCL share price has dipped by 6.80%, which has investors questioning if this is right time to buy.

Oracle Corporation (NYSE:ORCL) is one of the AI Stocks Analysts Are Watching Closely. On December 11, Stifel analyst Brad Reback lowered the price target on the stock to $275.00 (from $350.00)

Shares of Oracle (ORCL) drop after reporting earnings. The shares may have found support and a reversal may start.

Oracle Corporation is massively profitable, which limits risks for investors who are concerned about CapEx growth. Learn more about ORCL stock here.

Rising concerns about OpenAI’s mounting costs — set to hit $1.4 trillion due to its deal spree with firms including Nvidia ( NVDA ), CoreWeave ( CRWV ), AMD ( AMD ), and Broadcom ( AVGO ), in addition to Oracle — and increasing competition from Google's ( GOOG) Gemini models have made investors even more wary.

Oracle's post-earnings selloff reshaped expectations for ORCL stock. Here's how reflexive market behavior defines a clear options trade.

Oracle ($ORCL) stock was down 11% on Thursday, at the time of writing, as the database software provider and cloud computing company missed