CoreWeave and Oracle have borrowed heavily to build more AI data-center capacity, spooking bond markets and sending debt-insurance prices soaring.

Oracle's drop dragged other AI-related stocks lower, as well. Some of the worst performers on the Nasdaq 100 index included chipmakers such as Broadcom and Arm Holdings, which were both down around 5%. The Nasdaq Composite also slid more than 1.8%. The S&P 500 fell 1.2%.

Cloud-computing companies including Oracle Corp., Microsoft Corp. and Meta Platforms Inc. have committed to spend a combined $500 billion on data center leases in the coming years, an astronomical

Oracle Corporation (NYSE: ORCL) is one of the best Reddit stocks to invest in right now. On December 11, KeyBanc lowered the firm’s price target on Oracle to $300 from $350 with an Overweight rating on the shares. Despite the optimism regarding prospects, the company’s recent results for FQ2 2026 fell short, specifically in the cloud division.

Oracle (NYSE: ORCL) stock fell as much as 16.5% on Dec. 11 in response to the company's second-quarter fiscal 2026 results. Now, at the time of this writing, Oracle is down roughly 42% from its 52-week high, which was made just three months ago.

Oracle’s earnings report last week didn’t do much to soothe concerns about how the company will fund its artificial-intelligence investments. In fact, investor sentiment has taken a turn for the worse.

Oracle stock fell to its lowest levels since early June, extending its late autumn slump, as investors continue to question the huge amounts of debt the cloud-computing company is taking on to fund its new artificial- intelligence strategy.

Oracle and other AI stocks tumbled on Thursday after the company reported surging expenditures related to its AI data center buildout, reinforcing concerns on Wall Street about debt-fueled spending on the fledgling technology.

AI spending is front and center again for investors. Oracle plunged Thursday, with top hardware makers including Nvidia and Broadcom also dropping.

US tech stocks fell on Wednesday, as news that Oracle has lost a key backer for a data centre project reignited investor concerns over soaring spending by artificial intelligence companies and the debt that is funding it. The tech-heavy Nasdaq Composite dropped 1.1 per cent by late morning in New York, with Oracle falling 4.4 per cent.