Oracle Shares Plunge Amid Investor Skepticism Over AI Spending Plans

Oracle US68389X1054

A significant sell-off erased nearly 11% from Oracle’s share price on Thursday, wiping out approximately $80 billion in market capitalization. The catalyst was the company’s announcement of a massive ramp-up in capital expenditures for artificial intelligence infrastructure, a move met with investor trepidation rather than enthusiasm. The core concern is whether the enormous outlay will generate returns in a reasonable timeframe.

The company’s results for its second fiscal quarter of 2026 fell short of Wall Street’s expectations. Oracle reported total revenue of $16.06 billion, missing analyst estimates of around $16.2 billion. While this figure represents a 14.2% increase compared to the prior year, it was deemed insufficient by the market.