Oracle (ORCL) Plunges 4.41% to 2025 Low as AI Bets Spur Execution Concerns

The share price fell to its lowest level since September 2025 today, with an intraday decline of 4.70%. Oracle (ORCL) has now lost 4.41% over two sessions, marking its steepest drop in recent months amid mounting investor skepticism about its ambitious AI infrastructure bets.

Oracle’s stock weakness follows the announcement of an $18 billion loan for a New Mexico data center and a $300 billion contract with OpenAI, both tied to its Stargate initiative. While the projects aim to expand AI and cloud capabilities, analysts note the scale of capital deployment and execution risks. The OpenAI deal, though a significant backlog boost, has raised concerns about the partner’s financial sustainability, given its current losses. The data center loan, backed by major banks, carries high-interest costs and underscores Oracle’s reliance on external financing for growth.

The selloff reflects broader market caution toward AI-driven investments, with Oracle’s stock diverging from the S&P 500’s recent gains. Competitors like Microsoft and NVIDIA are also scaling AI infrastructure, intensifying sector rivalry. Oracle’s dual-track strategy—aggressive expansion and high-profile partnerships—highlights its push for AI dominance but leaves it vulnerable to execution delays or cost overruns. Investors are now weighing whether the company can balance its bold vision with financial prudence, a critical factor for long-term recovery.